Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI)

[jimmy667]

Since the USOI makes money to pay the dividend by selling the front month covered call on USO at 6% above current price when they roll it from prior month USOI does best in a stable price environment. If USO rises faster than that 6% the theoretical covered call is exercised so the USO has to be repurchased before the next month covered call can be sold to generate the next months dividend. So stable oil price will net the most dividends. The covered call sells off any rise in USO over 6% each month.