USO Follow Up

With the $USD down on the morning, oil is up and thus my USO calls, I had a May $39 I just sold and a May $38 I'm going to hold a but longer.

 The May $39 Calls were a bigger position at 90 contracts and in the money at a 10+% gain, the May $38's because of when I bought them are actually at break even, being a smaller position and having a decent profit in the $39's, I'm willing to let the $38's ride for now, but I'm not especially thrilled with the prospects of further gains with USO up 1.44% in early trade.

 Recall I was looking for USO to make a move toward the top of the channel, we are not quite there, but close and near resistance.

 Yesterday I showed you these 2 and 5 min charts, both with positive divergences and this is the reason I held on to the USO calls, also part of the reason I believed the SPY/Market would be higher today as USO would need a weaker dollar to make the move higher which would benefit stocks as well.


The 5 min USO positive divergence. Note USO is right around a resistance level, this is the reason I moved out of the bigger position while it was still at a decent gain.

It's too early to get a trailing stop in place on USO, but as soon as possible, I'll be looking to add a trailing stop for the May $38 calls that are still open.