Dan Nathan's United States Oil Fund ETF Trade

Speaking on

, Dan Nathan suggested that investors should consider using options to open a long position in

. He thinks that USO is not going to break below its 52-week low and on any sign of geopolitical crisis it will trade significantly higher. That is why he wants to sell the January 33 put for $0.75 and sell the January 37 call for $0.75. Net premium for this trade is zero and if USO trades between $33 and $37 he won't make any profit or loss. He gets long above $37 and also below $33. It is important to emphasis that he is selling the put option close to 52-week low.