Oil Yolo - Closed out USO and BNO Calls and Went Into $107,340 Brent Futures Contract

**Bit the bullet and took this oil yolo to the futures market.** Closed out USO and BNO call option positions for a $14,800 gain year to date. Opened a 1,000 barrel brent oil futures contract for $107,340

I have been resisting this trade for a month because the smallest brent oil futures trade on Power\*Etrade is 1,000 barrels, but this makes enough sense today. This yolo requires about $10,467 collateral, so it ties up a similar portion of my portfolio to 10 BNO or USO call options.

**Etrade’s $.50 fee in and out per options contract was starting to add up.** It’s not a lot of money, but a few hundred dollars a month less in fees is a welcome relief. I am still trading CVNA and LUV puts, but this one oil future contract at $1.5 in and $1.5 out can replace 100’s of USO and BNO options contracts.

**WTI (USO) is trading higher than brent oil today, and even with the 3 week longer contract it shouldn’t be**. Wti for May has surged and left Brent for June far behind, and my thesis that this conflict will last far longer than advertised the exact opposite should be happening.

**West Texas is a landlocked oil barrel in booming Oklahoma and Brent is a water-ready barrel in the North Sea.** Unfortunately BNO options were not capturing the major swings brent was displaying and had to be abandoned.

**Positions and Disclosure**: I am a retail trader and not an oil or financial professional. I hold 15x LUV weekly puts and 2 x CVNA weekly puts.

**Bflo-Retail**