The tense situation in the Middle East -- particularly, in Libya -- is driving a sharp rally in crude-oil futures and related ETFs. The $2.0 billion U.S. Oil Fund (USO), which invests in front-month WTI crude oil futures contracts, opened up more than 7% this morning.Investors looking to play this turmoil in the ETF space face an interesting choice: Use USO or turn to one of its competitors, such as the U.S. 12-Month Oil ETF (USL) or the PowerShares DB Oil Fund (DBO). USL and DBO differ from USO in that they do not track the front-month oil contract. Instead, they move out on the oil futures curve. USL, for example, invests an equal amount in the next 12 months' worth of oil futures contracts.
How To Play Libya
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.