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Chris Kettenmann's United States Oil Fund LP Trade

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Chris Kettenmann of Macro Risk Advisors spoke on Bloomberg Markets about a bullish options trade in United States Oil Fund LP (ETF) (NYSE: USO).

He's bullish on crude oil into the year end, but he thinks there's going to be some volatility on May 12 when President Trump decides on Iran sanctions. To make a bullish trade, he wants to sell the October 12 put and buy the October 15/17 call spread for a total credit of 1 cent.

If the stock stays between $12 and $15, Kettenmann is going to make 1 cent. Above $15, he can make an additional profit and it can maximally reach $2 if the stock moves to $17 or higher. If the stock drops below $12, he is going to have to buy it at $12.

Posted-In: Bloomberg Markets Chris KettenmannSpecialty ETFs Media ETFs

 

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