Credit Suisse X-Links Crude Oil Shares Covered Call ETNs [USOI] Stock Forecast

Chris DeMuth Jr. discusses his investment strategy for 2023 and the current state of the market. He expresses his preference for the energy sector, particularly oil and gas, due to mispriced equities and potential for cash returns.

Imagine stocks or funds that pay out their dividends once a month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst waiting for money is reduced by 300%, or more! These August U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (85); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >8.74% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 8/15/23.

Credit Suisse X-Links Crude Oil Shares Covered Call ETNs offers high dividend yields but has negative total returns. USOI writes covered calls against an ETF, USO, that holds oil futures contracts, resulting in NAV decay. The fund's high expense ratio and lack of trading opportunities make it unsuitable for investors in my view.

Imagine stocks or funds that pay out their dividends once a month!  Your angst waiting for money is reduced by 300%, or more; unlike waiting for quarterly, semi-annual or (ugh) annual payouts. These May U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (83); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >9.97% (80). Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 6/16/23.

A reader asked for my thoughts on USOI. The fund's strategy is equivalent to investing in oil futures and selling covered calls on its holdings. USOI has a strong 38.1% distribution yield but reduced potential capital gains and unchanged potential capital losses. USOI's strategy of selling covered calls on oil futures may not be compelling or appropriate for all types of investors.

Imagine stocks or funds that pay out their dividends once-a-month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst waiting for money is reduced by 300%, or more! These May U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net gains include: 1. Stocks by yield (83); 2. Stocks by price upside (30); 3. Closed-End Investments, Exchange-Traded Funds & Notes (CEICs/ETFs/ETNs) by yield >9.56% (80).

The increase in oil and sugar prices has affected not only households but also ETFs. Oil ETFs have surged in response to rising oil and gas prices.

The world seeks complexity, but simplicity often trumps complexity. For my investment goals, I have made the choice to focus mainly on CEFs and ETFs, carefully weighing their merits and drawbacks.

Investors are clamoring for ultra-high yield ETFs, causing some to look toward alternative products like crude oil futures call option selling. USOI is among the highest-yielding ETFs at a 37% dividend yield today, but its true expected return is much lower due to "contango decay" risks and capped appreciation.

Following UBS's takeover of Credit Suisse, there's uncertainty regarding CS's suite of ETNs. While CS is expected to shut down ETN operations, UBS could still continue operating the units given its significant size.

Credit Suisse X-Links Crude Oil Shares Covered Call ETNs is a US stock and trading under the symbol USOI

Credit Suisse X-Links Crude Oil Shares Covered Call ETNs stock price is $83.95 today.

Yes, Credit Suisse X-Links Crude Oil Shares Covered Call ETNs is a publicly traded company.