selkirk UCO
- Thread starter DIII
- Start date
Proshare Ultra Crude oil, like other ultra share gives you 2X the move on oil.
we have these in Canada, betapro, you get 2X, and you can pick the short or the long. in this case the long.
they are calculated daily, so this is very short term, let us say you have one day and oil goes down 10%, the valutaion is calclated at the end of the day.
high 27.04 low 5.77 after hours 6.65 close.
This would be a short term high risk way to play oil the price. on the bullish side. I am a long term bull on the price of oil and natural gas,
have been bearish in the short term, oil since around 80, though had no idea it would fall to this extent...wish I had.
It is almost impossible to time the short term movement in oil and natural gas, you can see the downward trend but when does it turn.
for the most part would avoid these double etfs and only suggested one recently.
have a good friend who is fully invested, long portfolio, and has covered calls on 75% of the portfolio but still fully invested and even some on margin....brave..
anyways suggest the double bear etf a small position, (would have suggested a huge one if new the markets would do for the last two months, ) or buy puts for his portfolio.
he has no interest in buying puts, so the double bear etf on the cdn. marktet works and has done in a short period of time.
now back to oil, around $45 is the price you need to meet the expected demand assuming regular economic growth of 2-3%, after the recession.
heard this from someone who covers the sector, that is true, in the short term, higher prices to develop oil sands....ect.
and at $40 just to maintain our current output....also oil companies are cutting exploration budgets from 20-80%, many 50-80%, hard to find one not cutting...as money is tight and who wants to look for oil.
so prices probably have to go higher but when, this could get much worse and it always drops more than you expect...ie. when oil was at 18 thought it was cheap had an oil company with some option stays flat I make 30%+++..
loss almost 30% because oil went below 10, it went below 8.... these always drop more.
so long term like oil, short term very cautious until I see a turn and figure out what the US will do with their banks....
you can buy some oil stocks and even write covered on them high premiums however if you want to put a small amount in, just make sure you are prepared to lose a large amount of the money invested.
25-40% since these move sharply...also you do not need much since these can move up or down sharply....
thanks
selkirk
we have these in Canada, betapro, you get 2X, and you can pick the short or the long. in this case the long.
they are calculated daily, so this is very short term, let us say you have one day and oil goes down 10%, the valutaion is calclated at the end of the day.
high 27.04 low 5.77 after hours 6.65 close.
This would be a short term high risk way to play oil the price. on the bullish side. I am a long term bull on the price of oil and natural gas,
have been bearish in the short term, oil since around 80, though had no idea it would fall to this extent...wish I had.
It is almost impossible to time the short term movement in oil and natural gas, you can see the downward trend but when does it turn.
for the most part would avoid these double etfs and only suggested one recently.
have a good friend who is fully invested, long portfolio, and has covered calls on 75% of the portfolio but still fully invested and even some on margin....brave..
anyways suggest the double bear etf a small position, (would have suggested a huge one if new the markets would do for the last two months, ) or buy puts for his portfolio.
he has no interest in buying puts, so the double bear etf on the cdn. marktet works and has done in a short period of time.
now back to oil, around $45 is the price you need to meet the expected demand assuming regular economic growth of 2-3%, after the recession.
heard this from someone who covers the sector, that is true, in the short term, higher prices to develop oil sands....ect.
and at $40 just to maintain our current output....also oil companies are cutting exploration budgets from 20-80%, many 50-80%, hard to find one not cutting...as money is tight and who wants to look for oil.
so prices probably have to go higher but when, this could get much worse and it always drops more than you expect...ie. when oil was at 18 thought it was cheap had an oil company with some option stays flat I make 30%+++..
loss almost 30% because oil went below 10, it went below 8.... these always drop more.
so long term like oil, short term very cautious until I see a turn and figure out what the US will do with their banks....
you can buy some oil stocks and even write covered on them high premiums however if you want to put a small amount in, just make sure you are prepared to lose a large amount of the money invested.
25-40% since these move sharply...also you do not need much since these can move up or down sharply....
thanks
selkirk