Oil and USO: To the moon and down; how to profit either way

USO is the most popular ETF to track the price of oil. Oil has risen very significantly lately, in what many analysts deem is unjustifiable given the poor economic conditions.

As USO trades very near $38, it is in a perfect price range for straddles, which allow an investor to profit either way the price goes. The following are straddles for both November and December for USO, showing the moves required for the position to be profitable..

These are computed with StraddlesCalc

Options are dangerous and may cause 100% loss. Please do your own due diligence.