UCO purchase

[QuarterMillionMan]

Took a loss of $300 and good thing I got out when I did or the losses would have been more, it's still in free fall.

[kork13]

Okay, I'm seeing a couple news alerts and a couple investment-inclined friends all squawking about May oil contracts dropping to zero... Does that actually mean producers literally can't give it away? It seems short-sighted (maybe impossible?) to take a commodity that's still in heavy use down to zero.

(I really don't understand the commodity markets...largely why I don't dabble with them. Apologies upfront for my ignorance)

[disneysteve]

Okay, I'm seeing a couple news alerts and a couple investment-inclined friends all squawking about May oil contracts dropping to zero... Does that actually mean producers literally can't give it away? It seems short-sighted (maybe impossible?) to take a commodity that's still in heavy use down to zero.

(I really don't understand the commodity markets...largely why I don't dabble with them. Apologies upfront for my ignorance)

Apparently May futures contracts fell to negative $6.72/barrel. June contracts fell to $22/barrel.

I don't completely understand that myself but clearly it means that the traders expect oil prices to not recover in the next month. I'm not really sure what a negative price means.

[disneysteve]

I just read that USO has announced that they will put 20% of assets into futures contracts expiring 2 months out instead of tracking the current price as they have always done. They're doing so to smooth out near-term performance.

Again, this is not my field at all so I don't totally know what that all means but I'm sure some of you do.

[greenskeeper]

Vanguard doesn’t allow purchasing UCO.

they put a stop to short term buying and selling about 2 years ago....they want investors to be "buy and hold"

[greenskeeper]

Going all in on RIG.....6300 shares for now

[disneysteve]

Going all in on RIG.....6300 shares for now

Good luck. I'm really fighting the urge to dive in to one of the oil options. I could take a decent position and have it be a fraction of a percent of our portfolio so it wouldn't be a big deal either way.

[Scallywag]

Going all in on RIG.....6300 shares for now

Which one?

[JBinKC]

Crazy is all I can say of WTI index . This tops negative interest rates. The right call was to weld shut a bunch of used shipping containers and let the sellers pay you 185K to take the oil off of their hands.

[~bs]

Oil is negative pricing now. Like -$30/barrel nuts. They have to pay people to take the oil away.

[rennigade]

I dont understand this stock. Its at $23 today. Im guessing that doesnt mean if you purchased shares when it was down at $1.30...and the next day it went up to $23...that doesnt mean massive profits.

[disneysteve]

I dont understand this stock. Its at $23 today. Im guessing that doesnt mean if you purchased shares when it was down at $1.30...and the next day it went up to $23...that doesnt mean massive profits.

I believe there was a reverse split.

[~bs]

Reverse split. Shares worth same in total.

[Scallywag]

Ok I am not able to sell UCO this morning. Fidelity does not have a sell button - is this temporary? Steve was right - never ever ever will I trade something I know nothing about! I thought i was buying an aggressive ETF that tracks oil, I had no idea this would be this hard to understand. I am beyond paranoid now.

[disneysteve]

Ok I am not able to sell UCO this morning. Fidelity does not have a sell button - is this temporary? Steve was right - never ever ever will I trade something I know nothing about! I thought i was buying an aggressive ETF that tracks oil, I had no idea this would be this hard to understand. I am beyond paranoid now.

I hope you get that straightened out. I kept watching and reading about some of these things - UCO, USO - but decided I just didn't understand them enough to invest. That's always the first rule of investing so I opted out.