The effect of contago on USO

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WINEX_IHB

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<a href="http://www.marketfolly.com/2009/01/how-contango-affects-crude-oil-etfs-and.html">http://www.marketfolly.com/2009/01/how-contango-affects-crude-oil-etfs-and.html</a>
 
I dunno. Contango on oil has been wild the last couple weeks. I do not play oil, but is interesting to watch.
 
Modified roll may help even if the entire futures curve is in contango. An investor can roll further out the curve to minimize exposure to steep contango through the nearby contract, and minimize the number of total rolls.
 
ha..yeah I read that article the other day. I was curious as to why USO was just sitting at around $28.80 couple days ago, yet oil was moving up and up
 
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