USO - Oil Fund - Short
I believe the spike in oil prices is going to fail at current resistance and decline towards the end of March. I am using the USO as a direct reaction to the price of oil rather than the XLE or equivalent index, which contains oil service stocks and could soften the drop.
I want to enter the April $73 puts if the USO trades at 74.50. That would be a breakdown below the intraday support from Thr/Fri. If the USO continues higher I will raise the entry point and strike. Aggressive traders could enter at resistance at $77.50.
Buy April $73 PUT UNA-PU if the USO trades at $74.50
Target $68.50 for an exit.