2006-10-21 12:26:40 · 9 answers · asked by Anonymous in Business & Finance ➔ Investing
well true you could do it on options and what not but there are several ETF's dealing with Oil and commodity plays. USO is a pure oil play that deals with the futures of Oil Contracts. XLE is a play on the Oil/Gas producers while DJP is a pure BALANCED commodity play that deals with oil, hogs, gasoline, gold, silver and about 25 others. DBC is like DJP but its slanted more towards Oil.
I don't like the way these elections are going right now and now that guy in Illinois wants to be president (at least its better than Hillary but the loss margin will be just as bad) the Democrats have twisted everything thing around and should they take control they will change a few things like the tax credits that wall street will hate.
2006-10-22 05:49:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
All those other choices about options, futures and etc... are for the high net investor, most brokerage firms won't let you open tha type of an account unless you have 100k or more, second it is crazy risky.
The best bet for an average investor to take action on there hunch about this oil is purchase a energy mutual fund. Mutual Fund accounts usually only have a 1k, 5k or 10k mininum to purchase yet you can still make good returns. Try vanguard, fidelity or troweprice.
Good luck
2006-10-21 17:13:43 · answer #2 · answered by doof55 2 · 0⤊ 0⤋
you have several anwers suggesting option contracts. They will give you the best chance of making a lot of money, but if oil does not move the way you expect or if your timing is off, you will get wiped out. Options come with an expiration date. They have to be executed before that date. I think perhaps quite a few people might have the same idea as you. COP Jan 08 65 calls (4 points out of the money) are trading at 5.76 with an open interest of 15,000 contracts. the 70 calls are at 4.20 with 25,000 contracts. The 90 calls are at 0.95 with 47,000 contracts (29 points out of the money)
2006-10-21 14:22:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Don't forget there is a election Nov.18 If Democrats wiggle in the oil company's will likely take a hard hit if the past records hold true......
2006-10-21 18:24:54 · answer #4 · answered by cmac 2 · 0⤊ 0⤋
Basically a long position, rather than a short. Try some option contracts, (talk with your broker) to see if his house handles option trades, then maybe get a broker assist for your first couple of trades.
2006-10-21 12:33:34 · answer #5 · answered by The Advocate 4 · 0⤊ 0⤋
http://Energy-Reporter.Org/ has some good coverage of the forecasts and outlooks for the sector. There is also information on futures trading as well as oil related stocks. You will be able to get a lot of info there.
2006-10-21 12:30:57 · answer #6 · answered by phx_oil 2 · 0⤊ 0⤋
Buy out-of-the money call options on oil futures.
2006-10-21 12:31:09 · answer #7 · answered by NC 7 · 0⤊ 0⤋
Buy stocks in oil company.
2006-10-21 12:57:45 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Buy a hybrid.
2006-10-21 12:29:12 · answer #9 · answered by fancy unicorn 4 · 0⤊ 0⤋