Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI): Random thoughts you ask? Well, here it g...

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Tuesday, 10/06/2020 2:23:28 AM

Tuesday, October 06, 2020 2:23:28 AM

Random thoughts you ask? Well, here it goes.

As viewed from a 2 year chart, It would appear to me that she's bottomed out. Not much down side potential here. If oil were to return to $70 bbl levels one could expect some capital gains IMO.
I am rather enamored with the monthly dividends myself. It is my understanding that when the market tanks (specifically USO), the dividends are all the more rewarding based on Credit Suisse's practice of paper trading options. Notional Covered Calls they are.
On the other hand, if the market goes up (USO that is), I will be anticipating capital gains. Currently I'm grabbing up all my small account can afford. I am highly confident oil will not remain at $39 bbl for too awful long.
My USOI position is currently -$310. I have received $110 in dividends in two months. With my perceived notion of a limited downside potential, I can imagine a day whereas the dividends out pay the capital losses.

just my thoughts