I bought $UWTI, the triple leveraged ETF for Crude Oil. Here’s a 20 yr chart of oil with price sitting on multi-decade support:
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Joined Jan 27, 2008
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I want it to break that blue line!!
if we break that blur line, I’m heading west. Our economy can’t handle cheap oil.
where will you move? ill get shot and or looted if i stay here in new orleans.
We break that blue line and our economy will crash.
lookin at it as well.
stop reference on UWTI ?
treating it as a call option at this point. Left room to average in if need be.
same, took 1/3 of intended position just now. where are we looking to add here if it further drops? no price reference point to go off of
it may overshoot, but I think stabilizes around these levels. If not, we got other things to worry about.
i wholeheartedly agree, if oil keeps going, sub 40s in particular, i have much bigger concerns than losing a little trading change.
1000% return in this etf will get us back to months ago. bring it on. 🙂
would buying uso call’s (march) strike 22 not be a equivalent opportunity , in the case oil will turn up to $ 55 ?
implied vol on the options are pumped, so that’s another factor. If oil goes back to $55, implied vol could head lower, so you may make less than you’d anticipate.
@Rajun – you holding these overnight?
yes, and yes
Amazing chart, thanks for sharing.
Sounds like a fun trade! Good fortune to you, RC!
Starting to see articles around the Bloombergs saying that a 2 handle on crude is in sight. I’ll take the other side of that all day.
Many wells are profitable at 25 – 30 Bbl so the end of civilization with sub 40 oil is tin foil hat material.
Over 100 Bbl was sheer chicanery and allowed Big Oil to bank 100’s of billions of dollars. 50 Bbl is a stable, more sustainable price per Bbl.
And we’ve got two major pipelines opening up to the Gulf refineries with a combined 1M Bbl per day flow rate.
This puts the arabs behind the eight ball.
Wow, the 2010-2013 triangle looks so obvious in retrospect.
Sure does.
I’m not in oil but I will note there
has not been a pause in the freefall.
Low oil is great for everyone. Bond holders
are sharp guys and are hedged.
Come on out to Cali brother! 😉