1. OIH is a bunch of stocks. They follow oil prices but will not run up in complete sync with oil. For USO, it will be another story, becuase it will be in parallel with oil prices.
2. OIH is optionable, so I can short by sell naked calls. Taking advantage of time decay, I can easily break even if I am wrong. USO is not optionable, so you have to short sell it directly. If you are wrong, you have no way to save yourself but pray.
It is not too bad to admit that we ourselves can be wrong, sometimse deadly wrong. We need some buffers in trade for our misjudgement, even plain mistakes. I don't establish the success of my trade upon the preciseness of my analyses.
2. OIH is optionable, so I can short by sell naked calls. Taking advantage of time decay, I can easily break even if I am wrong. USO is not optionable, so you have to short sell it directly. If you are wrong, you have no way to save yourself but pray.
It is not too bad to admit that we ourselves can be wrong, sometimse deadly wrong. We need some buffers in trade for our misjudgement, even plain mistakes. I don't establish the success of my trade upon the preciseness of my analyses.