(USOI) Credit Suisse X-Links Crude - Ratings and Ratios

The investment seeks to provide returns tied to the performance of the price return version of the Credit Suisse Nasdaq WTI Crude Oil FLOWSTM 106 Index. This index replicates the returns of a covered call strategy applied to shares of the United States Oil Fund, LP (USO). The strategy involves selling monthly call options on USO shares, with returns based on price changes of USO shares and notional option premiums, less transaction costs. The ETN provides exposure to crude oil prices through USO, which holds WTI crude oil futures contracts.

USOI is an ETN listed on NASDAQ, focusing on commodities, specifically crude oil. It offers a unique approach by combining equity and options strategies, targeting investors seeking crude oil exposure with potentially lower volatility compared to direct futures investments. The ETNs performance is influenced by USOs price movements and the premiums generated from selling call options.

Current technical indicators suggest USOI is trading near key resistance levels. The last price of $61.57 is slightly below the 20-day SMA of $62.29, indicating potential selling pressure. The 50-day SMA at $62.69 and 200-day SMA at $61.21 suggest a neutral to slightly bearish short-term trend. The ATR of 0.96 reflects moderate volatility, with average daily price swings around 1.57% based on current prices.

The funds AUM of $329.24M reflects moderate investor interest in this structured product. USOIs returns are influenced by USOs performance, which is tied to WTI crude oil prices. The covered call strategy aims to generate income through option premiums, but may limit upside during sharp oil price rallies. Investors should consider the ETNs fees and the impact of option decay on long-term returns.