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    #16
    if you look back to the 2008 crisis or any other ones for that matter, people that took big risks betting on the companies that are crashing the hardest stand to gain the most when they recover or lose the most if they dont. its your choice on if you want to take the risk

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      #17
      Whatever he did, he sold his position? and walked with $1k profit.

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        #18
        reverse split coming up...probably to increase value of shares for the next big drop in oil....I’m not in....yet.
        Gunga galunga...gunga -- gunga galunga.

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          #19
          isn't the price in oil going to jump temporarily? OPEC just reached agreement?

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            #20
            Good Luck with your investment I think the huge contango spread built into the market is going to be a major headwind for upside.

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              #21
              Can someone explain UCO to me? Is it essentially a bet on the future price of oil? If so, with the price currently at a 20-year low, isn’t it a pretty safe bet that the price will rise relatively soon? UCO is off over 90% from its recent high. Other than the price of oil dropping even lower, is there any way to lose money on your investment, especially at its current price? What is the potential downside?
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

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                #22
                Its a bet on oil price futures and not a barrel of oil because of the high carrying costs to store it. Note with even all time VLCC dayrates these guys buying at spot are still going to profit handsomely because of the current huge contango in the market. The current contango premium is so high it is a absolutely a foolish bet to believe oil will outstrip a 70% premium 3 months from now.

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                  #23
                  Originally posted by JBinKC View Post
                  Its a bet on oil price futures and not a barrel of oil because of the high carrying costs to store it. Note with even all time VLCC dayrates these guys buying at spot are still going to profit handsomely because of the current huge contango in the market. The current contango premium is so high it is a absolutely a foolish bet to believe oil will outstrip a 70% premium 3 months from now.
                  I don’t understand anything you just said. Good clue for me that I shouldn’t even think about investing.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

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                    #24
                    Originally posted by disneysteve View Post
                    Can someone explain UCO to me? Is it essentially a bet on the future price of oil? If so, with the price currently at a 20-year low, isn’t it a pretty safe bet that the price will rise relatively soon? UCO is off over 90% from its recent high. Other than the price of oil dropping even lower, is there any way to lose money on your investment, especially at its current price? What is the potential downside?
                    It's supposed to mirror the daily price movement of oil, positive or negative, by 200%. (SCO is it's inverse if you think oil will fall further)

                    The multiplication factor can make the value skew significantly from the actual oil price change.

                    There will also be a 25:1 reverse split around the 21st.

                    I'm waiting until oil drops further....I believe it will get near or below $10/barrel

                    Thats when I'll throw some money at it.
                    Gunga galunga...gunga -- gunga galunga.

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                      #25
                      I tried to buy SCO todsy and Fidelity forced me to sign a bunch of threatening warnings viz

                      1. I know what the freak I am doing.

                      2. My investment objectives are "most aggressive"

                      3. I am OK with losing the shirt on my back, my home, a kidney, my first born son, anything i own that would be actually worth possessing etc etc etc

                      What in the actual freak.....!

                      I ended up buying 11 shares as opposed to the original 100 I planned. They scared me .. UGH

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                        #26
                        Vanguard doesn’t allow purchasing UCO.
                        Steve

                        * Despite the high cost of living, it remains very popular.
                        * Why should I pay for my daughter's education when she already knows everything?
                        * There are no shortcuts to anywhere worth going.

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                          #27
                          I'm looking at buying either of these 2 oil ETFs' (or both);

                          1) OIL which is iPath's series S & P crude oil total return index ETN at $3.71 per share, one year ago it was about $14 per share.
                          or
                          2) USO which is the United States Oil Fund LP at $3.80 per share, one year ago it was also $14 per share.

                          Oil is cheap right now. Might throw $15,000 - $20,000 at it and let it ride for a year or two.

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                            #28
                            Originally posted by QuarterMillionMan View Post
                            I'm looking at buying either of these 2 oil ETFs' (or both);

                            1) OIL which is iPath's series S & P crude oil total return index ETN at $3.71 per share, one year ago it was about $14 per share.
                            or
                            2) USO which is the United States Oil Fund LP at $3.80 per share, one year ago it was also $14 per share.

                            Oil is cheap right now. Might throw $15,000 - $20,000 at it and let it ride for a year or two.
                            That's why I was watching UCO but between the difficulty actually buying it and quite honestly not fully understanding how it worked, I didn't.

                            USO is more in my wheelhouse. However, looking at the performance over time, it's not particularly good. It was pretty stagnant the past 5-6 years until a few weeks ago. The fund has existed since 2006 and has a since-inception yield of -17.95%. Somebody who invested $10,000 in April 2006 and let it ride now has just over $600.

                            One could argue that oil is at a low point now, which may be true, so buying and holding on for a bit might not be bad but it probably isn't a real long term investment.
                            Steve

                            * Despite the high cost of living, it remains very popular.
                            * Why should I pay for my daughter's education when she already knows everything?
                            * There are no shortcuts to anywhere worth going.

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                              #29
                              I just tried buying both OIL & USO from my retirement account but it wouldn't go through saying something like these ETFs are prohibited in this account. However, UCO went through at $1.60 per share and I bought 3000 shares, dang as soon as the order executed crude went into free fall so I lost about $300 in a matter of seconds. Debating if I should get out. Son of sushi.

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                                #30
                                I purchased SCO (inverse UCO), as I predict oil will likely tumble down to $10/barrel. I did briefly consider buying UCO but may be in small amounts.

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