Chris Kettenmann's United States Oil Fund LP Trade

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