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My question, and I don't think anyone can answer this, if this notion of "sunshine killing the virus," why are cases in Florida and Georgia going up? To my knowledge, those states are warmer and sunnier than New York and Michigan. That sunshine notion makes zero sense.
But can't the US prop up our oil industry? I'm not an oil expert but I thought the Saudis learned how resilient US shale is. Or do you think this is finally when creditors come calling?
Because I’ve always been able to buy back at a lower price. Also I have a limited amount of funds and need the proceeds to purchase other stocks that I think have more upside
I'm not an expert either by any means, but got interested in the oil space because of my substantial Tanker position.
Only reason I can see is you want to take profits now because you think their report will tank Thursday and you want to buy back on Friday.
For anyone looking to invest in $UCO, this article is a must read and can better explain the pitfalls of investing in this ETF.
The contract for 5/15 was $0.396 at the time I purchased it. Each contract is 100 shares, so the contract was $39.60. If $USO is dunzo prior to the expiry, the profit is $310.40/contract ($3.50 * 100 - $39.60). This assumes no commissions on the trade.
Fwiw I think their report hits big Thursday but hoooo boy I’ve been wrong on that before.
not if I had to store it in my backyard, I already have a composter and metal shed i don't use.
Problem with Amazon is they don’t really care sometimes like the last few quarters where they took a hit to profit because they wanted to setup the one day delivery. It was a very smart thing that they did based on CV and way more people getting stuff delivered but at the time the stock took some hits even though they said it would hit the bottom line. Long term they want to have a higher stock price and growth but as you said you never know with them quarter to quarter.
Not a good idea after talking to my friend who's a long/short energy trader for a hedge fund.
Bossman loves writing puts. I could see him dabbling with this. Percent-wise, those are extremely rich premiums for an option trader with titanium ####.
Man oh man -35% today. I just couldn’t get enough info to be comfortable on buying any. Just don’t understand it.
When I was picking up lunch I had CNBC radio on. They said if you put $10,000 in USO when it was started, maybe 2006ish I can’t remember, it would be worth $600 today.
I think any of these future ETFs likely lose money over time. They shouldn't be held forever, otherwise you're just paying theta to the banks.
He doesn't think USO will survive May and if it does, it'll be gone in June save a crazy move by SA or Putin.
Like other ETFs, especially leverages ones, my "long" is holding a few days, maybe a week or so but its painful. Never months or years.
Guess I don't see the put-writing as "hugely risky." Let's say you sell 10 puts at $0.51 for May 29 expiry at a strike price of $1.50. You're risking $1500 (that's what it would cost you if the thing goes to zero) and you're getting $500 premium up-front. The most you can lose is $1000 and you stand to gain $500. That's a 50% ROI for six weeks. The key unknown is the probability that USO goes to zero (and maybe that's a guarantee, I have no idea) but if there is a decent chance it does not go to zero then you're certainly getting a good return. Do ETFs go to zero? The article that was linked implies that it can.
gotcha. I thought you were talking about buying puts. It does seem like USO has a decent chance of being destroyed here.
Well that was smart just trying to help other folks out. I had a buddy who wanted to buy UCO yesterday. Could have lit 50% of his money on fire and it'd be more fun.
Agreed. When they rolled the contracts to August they destroyed even more NAV when they moved up the futures curve. But I'm sure the retail investors don't know/care about that.
That's why brokerage houses have back offices. No idea how but there is a way to settle the contract. Maybe the contract just settles financially with someone who's short.
Already trading at more like $0.35 per put. That's a nice gain but I haven't seen Bossman around. I doubt anyone rolled the dice on that one.
Yeah, kicks the can. Kills my short-dated puts. But will probably double down on some July puts.
I traded it years ago. I realize now how little understanding I truly had. Never again.
Well I was dumb enough to buy a call and it's still slightly negative after that pump.
DMC Global not only took the loan, but laid off 1/3 of it's workforce.
