If you look at the chart for USO when oil hit it's low of $30.28/bbl on Dec 23rd,2008 the stock was around $ 30/share. now WTI oil is trading at $61/bbl and the stock is.....NOT double! It actually closed at #33.38/share today. My GREAT stock picking, or very close to it, at the bottom in oil was NICELY rewarded with a 10% gain. Yes, oil went up 100% and this POS went up 10%. To much money is lost with the buying and selling of monthly oil contracts. Money is better spent elsewhere. USL, I think did far better but check out for yourself. I am out of here.
I bought in march, im happy. 40 % gain in 8-10 weeks isnt so bad. I think that actually might be the strategy in investing. Buy low and sell high. Shit I didnt even have to buy a book. Think and you shall be rewarded. Dont bash a stock based on your poor judgement and timing. Grow up.
I am a living proof of that, I bought USO @ 32.14 in December when barrel of oil was about $40, sold it day before yesterday @ 32.89 when barrel of oil was about $61. I think its the futures that this ETF holds and the cotango effect.
At least the Proshares Ultrashort SCO was at 44/share on Dec 23rd and it is down 50% with todays closing of 22/share. So you would have made more money shorting the SCO (if you can) betting that oil would go up in price vs. holding this POS stock and reaping a wopping 10% gain in price over the same time period. So with a $15k dollar short at $44/share of SCO would be 341 shares (341 x 44.00 = 15,000) If you covered today at $22/share (341 shares x 22 = 7502) or roughly $7500 in profit shorting. If you went LONG USO on the same day you could have bought (500 shares x $30/share = 15,000) If you would have sold today at $33/share. (500 shares x $33/share =$16500) YOU WOULD HAVE MADE A BLOCKBUSTER $1500 OVER THE SAME TIME PERIOD GOING LONG THE USO. Make more money Shorting the SCO if you think crude is going higher. This stock sucks!!!!!!!!