It appears that we will have another gap open when it comes to Oil on Friday morning when trading opens in New York. Oil futures at NYMEX are trading above US$ 75.38 a barrel for July deliveries. While the 4 day week starting Tuesday as well as the month end may weigh on trading and positions today, media and news coverage so far this morning is generally bullish. This appears to be a great time to buy some long dated puts on USO and OIL. Remember as soon as we come back from the Memorial Day weekend it would be time for both USO and OIL to roll over their future positions to avoid taking deliveries for the June crude oil contracts.
As soon as I get out of my USO calls, the next trade is a put option expiring in October.