US Oil Fund (USO) – Big Rebound in Oil – May 6th, 2019

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.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: USO Options Action Video