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Oil surged nearly 40% in two weeks, but USOI ETN capped gains at 6% monthly for steady income.

Market News
23 Mar 2026
247 Wallst
View Source
Neutral
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In early March 2026, crude oil prices jumped from about $71 to nearly $98 per barrel due to geopolitical tensions, a nearly 40% surge. However, the ETRACS Crude Oil Shares Covered Call ETN (USOI) limits monthly gains to 6% by selling call options, prioritizing consistent monthly income over capturing large price spikes. This strategy benefits from higher volatility through increased option premiums but exposes investors to counterparty risk since USOI is a debt note issued by UBS AG, not a traditional fund holding assets. USOI suits investors seeking steady income with crude oil exposure who accept capped upside and credit risk.

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