USO - United States Oil Fund *** Short ***
This play is based on the potential for selling in the oil futures as Nymex crude options expire next Thursday and Crude Futures expire the following Tuesday.
There is a trigger on this play. Do not enter unless the USO trades at $87.25 or touches $90.
United States Oil Fund, LP (USOF) is a commodity pool that issues limited partnership interests or units that may be purchased and sold on the American Stock Exchange (the AMEX). The Company invests in futures contracts for light, sweet crude oil and other types of crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the New York Mercantile Exchange (NYMEX), International Currency Exchange (ICE) Futures or other United States and foreign exchanges (collectively, Oil Futures Contracts). It holds interests in other oil-related investments such as cash-settled options on Oil Futures Contracts, forward oil contracts, and oil-based over-the-counter transactions. As of December 31, 2007, USOF held 4,754 Oil Futures Contracts traded on the NYMEX and 300 Oil Futures Contracts traded on the ICE Futures. The Company operates under full management control of its sole General Partner, Victoria Bay Asset Management, LLC (the General Partner).
Breakdown trigger: $87.25
Buy May $85 PUT UNA-QG currently $2.65
Upside trigger: $90.00
Buy May $87 PUT UNA-QI currently $3.70
EBAY - Ebay Inc *** Earnings Short ***
Ebay has a seriously bad habit of declining after their earnings announcement. They have ramped into earnings this quarter with a +$7 bounce from the March lows. A negative surprise here could be ugly. This is a short-term play with a minor risk of only $1.30.
eBay Inc. (eBay) provides online marketplaces for the sale of goods and services, as well as other online commerce, or ecommerce, platforms, online payments services and online communications offerings to a diverse community of individuals and businesses. The Company has three business segments: Marketplaces, Payments and Communications. Its Marketplaces segment enables online commerce through a variety of platforms, including the traditional eBay.com platform and eBays other online platforms, such as its classifieds Websites, as well as Half.com, Rent.com, Shopping.com and StubHub. eBays Payments segment, which consists of PayPal, enables individuals and businesses to send and receive payments online. Its Communications segment, which consists of Skype Technologies S.A. (Skype), enables voice over Internet protocol (VoIP) communications between Skype users and provides low-cost connectivity to traditional fixed-line and mobile telephones.
Buy May $30 PUT XBA-QF currently $1.30