Quote:
Originally Posted by BYU71
I am checking into that . I don't do commodities and never have, so I am totally in the dark there.
There is an ETF that tracks oil. The symbol is USO. One could short that stock, but it would tie up a good chunk of change. You can also buy put options on the ETF, but the premiums look expensive. I only looked at the ones 3 months out. I wouldn't buy those personally.
I got busy taking care of a few clients and didn't really follow up.
I get a feel for when we are near a high and I think we are there. My problem is that feeling can be a year premature. I sold my clients out of Cisco for example in 1999 at $56. They weren't too happy when it kept going up to $72 in 2000. We had bought it at $9, I thought $56 was good enough and the COMP was way over priced at 4200. Of course it went to 5000.
About a year and a half ago I thought housing and real estate was over priced. I am early on this stuff and that is why I mentioned I need to find something I can hold for at least a year for this to work.
|
Just looked and there is action on USO puts as far out as July. The July 68 puts have some decent open interest and closed at 2.94.
However, doesen't USO track oil company stocks, not the commodity itself? I don't know jack about commodities.