Bullish – USO $12.87 – Energy
On Friday’s Options Action, the crew analyzed the performance of oil prices. Oil has staged a significant rebound after deep declines last year and recently pulled back towards its $60 support level. Coupled with flat inventories and increasing demand, oil will likely rally. Expecting oil to trade higher, Michael Khouw suggests buying a July 13.5 Call for an $0.42 Debit. As of Friday’s close, these puts were trading at a $0.38 Debit.