How to Trade the SPDR S&P Oil & Gas Exploration ETF

The video discusses the current trends in oil and the dollar, highlighting oil's strong performance and the dollar's recent downward trend. It explores the relationship between oil and the dollar, noting that dollar weakness could boost oil prices. The video also presents a trade strategy involving XOP calendar call spreads, leveraging perceived stock weaknesses relative to commodities.

What is the typical relationship between oil prices and the dollar?

• They usually move in the same direction.

• They always move in opposite directions.

• They typically move inversely.

• They are not related.

What could potentially cause the dollar to weaken by the end of the year?

• Stronger economic growth

• Higher interest rates

• Rates differential and macroeconomic issues

• Increased oil production

What is the main focus of the XOP calendar call spread strategy?

• To benefit from stock market volatility

• To capitalize on oil price increases

• To exploit term structure in options

• To hedge against currency fluctuations

What is the expected maximum payout of the XOP calendar call spread trade before October expiry?

• $1

• $4

• $2

• $3

How does the XOP ETF differ from EXCELLION and OH?

• It is market cap weighted.

• It is equal weighted.

• It focuses on larger stocks.

• It only includes oil companies.