USO Update

Friday I opened a Put position in the options model portfolio in USO September $35 puts, here's today's update.

I think if you are interested, there's going to be an intraday move higher that one could use to short in to price strength/underlying weakness.

I have no plans to close the USO put and may even consider adding to the short position in the equity model portfolio.

 USO weakness intraday after seeing pretty good strength overnight, note the volume surge as stops were hit, this opens USO up to some intraday upside volatility.

 The stops were from this support, which was also the closing high on 7/19, the July closing high.

 The reason I want to be short USO can be found on the longer charts like this 60 min leading negative.

 Or this 30 min leading negative

 Timing wise, the 15 min chart's leading negative made the position look more attractive from a timing perspective, especially for the options position.


This is the 2 min intraday with a leading positive divergence, this is why I think we will see intraday upside, but with the longer charts as negative as they are, I wouldn't be a buyer of this positive intraday divergence, but rather look to short in to price strength as the underlying weakness is already in place.


If I add to the equity short position I'll let you know before.