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This Options Spread Trade In USO ETF Provides A Hedge Against Stocks And Bonds

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The traditional hedge that stocks and bonds have provided against each other is breaking down. So, let’s consider an alternative that involves the USO ETF. The S&P 500 and long-term Treasurys have shown a positive correlation of 0.35 in 2026 — and more concerning, that correlation has spiked during this year’s drawdowns, leaving investors facing losses across their entire portfolio…

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