USO Rollover of Oil Contracts Starts Today

Please note that USO beings rolling over the oil contracts today, 25% of contracts are being rolled over today, and 25% on each of the following 3 days, ending on March 11.

Because USO is the largest golder of near-month oil contracts, in recent months the price of oil has dropped significantly when it rolls its contracts over. To mitigate this, USO has changed its policy to extend the rollover to 4 days, as opposed to one. Today (12:38PM) April contracts are up $0.95, or +2.1%:



UCO straddles could be a terrific way to play this for next week. Here are the moves required:




Here is the USO rollover calendar for 2009:



By the way, according the USO prospectus, this is what should happen. Their prospectus, however, still shows rollover over a single day!



EDIT/Update. At 3:05PM, UCO is up to $8.15. here is the 7.50-9 strangle: