CNBC’s Options Action Trade for Feb 5th, 2018 – US Oil Fund (USO)

On Friday’s CNBC’s Options Action, the crew analyzed the performance of crude oil. Crude has rallied substantially off its mid 2017 lows and has recently reached the top of a bullish channel. Crude has an inverse relationship to the US Dollar which has reached a support level, suggesting a possible bounce lower for crude. Coupled with a healthy supply and soft demand for oil, expectations are for oil prices to move lower. Expecting oil prices to have peaked here, Michael Khouw suggests buying an April 12.5/11.5 Put Vertical for a $0.20 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: USO Options Action

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