Selling our UCO put contracts ahead of expiration.
Shares of UCO have held up as oil prices have remained high. We’ll go ahead and close out this position since the put contracts will expire tomorrow.
I still expect oil prices to pull back. So I may be rolling out put contracts on USO very shortly. (USO is turning out to be a better trading vehicle for oil exposure than UCO.)
At the same time, our bullish CVX position helps to balance our exposure to oil. And I believe oil stocks like CVX have a long way to run now that energy stocks are back in favor.