Comments on: Overbought Oil and Weekend Reading http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm Building Wealth through Saving and Investing Tue, 16 Mar 2010 22:04:48 -0400 http://wordpress.org/?v=abc hourly 1 By: ETF Income http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-37074 ETF Income Tue, 27 May 2008 14:05:50 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-37074 I believed HOG concentrated more on American oil companies and HEG is for Canadian oil companies. It could goes as far as $150/barrel before it will correct. Prepare to buy these ETF after the China Olympics. I believed HOG concentrated more on American oil companies and HEG is for Canadian oil companies. It could goes as far as $150/barrel before it will correct. Prepare to buy these ETF after the China Olympics.

]]> By: JR http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36851 JR Mon, 26 May 2008 00:12:06 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36851 BTW, on stargazing, BAC is one of my picks (nice dividend & nice hedge on its options), as is the larger airline stocks AMR & UAUA. BTW, on stargazing, BAC is one of my picks (nice dividend & nice hedge on its options), as is the larger airline stocks AMR & UAUA.

]]> By: JR http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36847 JR Sun, 25 May 2008 23:54:48 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36847 FT: interesting that you picked (symbol: DUG). The fact is nobody knows if or when a correction would take place. Suppose you, any of you stock investors are stargazer and somehow know the oils will fall within 6-months (depending on the outcome of the US elections), then you would be a winner ... right out One should consider hedging against the hedge just in case the oil keeps pumping $$$, shooting to the stars. One other possibility is UYG. By hedging one could simply buy either stock symbol & there are many more, sell the call option long (jan-09) at the money, collect around $5, and if oil keeps on shooting up, the stock price goes down. The $5 money that has been collected as safety will go to zero. Your choice at that point is to do nothing or simply close the contract and sell the stock. Then should the oil or financials go the other way (down), the stock goes up, you will be called and collect around 19% for 6-months. Now that aint too bad. When a stock has options plus paying dividends, then one should consider taking advantage of the fullest benefit, not just simply buy and hold Then again no one knows what is the right situation or which direction the market or oil prices will head until after it happens. FT:

interesting that you picked (symbol: DUG). The fact is nobody knows if or when a correction would take place.

Suppose you, any of you stock investors are stargazer and somehow know the oils will fall within 6-months (depending on the outcome of the US elections), then you would be a winner … right out

One should consider hedging against the hedge just in case the oil keeps pumping $$$, shooting to the stars.

One other possibility is UYG.

By hedging one could simply buy either stock symbol & there are many more, sell the call option long (jan-09) at the money, collect around $5, and if oil keeps on shooting up, the stock price goes down. The $5 money that has been collected as safety will go to zero. Your choice at that point is to do nothing or simply close the contract and sell the stock.

Then should the oil or financials go the other way (down), the stock goes up, you will be called and collect around 19% for 6-months. Now that aint too bad.

When a stock has options plus paying dividends, then one should consider taking advantage of the fullest benefit, not just simply buy and hold

Then again no one knows what is the right situation or which direction the market or oil prices will head until after it happens.

]]> By: ThickenMyWallet http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36684 ThickenMyWallet Fri, 23 May 2008 23:42:58 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36684 Thanks for the mention and thanks for the kind words GIV. As for oil, I wonder if we have gone from the tech bubble to the real estate bubble to the commodities bubble. Too much easy money, not enough good deals. Thanks for the mention and thanks for the kind words GIV.

As for oil, I wonder if we have gone from the tech bubble to the real estate bubble to the commodities bubble. Too much easy money, not enough good deals.

]]> By: Wiser Miser http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36683 Wiser Miser Fri, 23 May 2008 23:21:49 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36683 The quick rise in oil prices has created a very tempting reason to try shorting oil. HOD and HED, both on the TSX, can help you accomplish that but it offering ~2x the move of the commodity / index, I still haven't figured how much, if any, I should invest / gamble in it. In any rate, it would be a short-term position in my portfolio and I definitely would have to keep a very close eye on it and place a stop loss. Another way to bet on lower oil prices would be to invest in airline stocks. As big consumers of oil, they can only only benefit from lower oil prices. The quick rise in oil prices has created a very tempting reason to try shorting oil. HOD and HED, both on the TSX, can help you accomplish that but it offering ~2x the move of the commodity / index, I still haven’t figured how much, if any, I should invest / gamble in it. In any rate, it would be a short-term position in my portfolio and I definitely would have to keep a very close eye on it and place a stop loss.

Another way to bet on lower oil prices would be to invest in airline stocks. As big consumers of oil, they can only only benefit from lower oil prices.

]]> By: GIV http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36647 GIV Fri, 23 May 2008 15:37:34 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36647 I particularly enjoyed Thicken my Wallet's facebook post. Always interesting to read rational business-focused ideas on something as frivolous as facebook I particularly enjoyed Thicken my Wallet’s facebook post. Always interesting to read rational business-focused ideas on something as frivolous as facebook

]]> By: Canadian Capitalist http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36635 Canadian Capitalist Fri, 23 May 2008 14:18:17 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36635 Thanks for the link. Have a nice weekend. Cheers! Thanks for the link. Have a nice weekend. Cheers!

]]> By: Dividendgrowth http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36632 Dividendgrowth Fri, 23 May 2008 13:50:08 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36632 Unfortunately, oil could be going higher, which sucks big time.. One things that you learn trading futures is that you should never go/trade against the market. Maybe some UGA ( united states gasoline trust) might be a good idea for hedging gas exposure.. Unfortunately, oil could be going higher, which sucks big time.. One things that you learn trading futures is that you should never go/trade against the market.
Maybe some UGA ( united states gasoline trust) might be a good idea for hedging gas exposure..

]]> By: Four Pillars http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36617 Four Pillars Fri, 23 May 2008 11:46:32 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36617 Thanks for the link - I hope you aren't going to be one of those parents! :) FB - that's funny. Mike Thanks for the link – I hope you aren’t going to be one of those parents! :)

FB – that’s funny.

Mike

]]> By: FrugalTrader http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36615 FrugalTrader Fri, 23 May 2008 11:38:47 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36615 Grant, you are right, the long term prospects of oil are only going higher. My speculation is for the short term only. My suggestion is that if you're going to trade the oil short ETF, make sure to trade with tight stop losses! Grant, you are right, the long term prospects of oil are only going higher. My speculation is for the short term only.

My suggestion is that if you’re going to trade the oil short ETF, make sure to trade with tight stop losses!

]]> By: grant hornsby http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36613 grant hornsby Fri, 23 May 2008 11:33:34 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36613 thing about oil is this even though we're at record highs - i wouldn't bet against oil at lesat not in the short term. shorting it you could lose your shirt! and more! thing about oil is this even though we’re at record highs – i wouldn’t bet against oil at lesat not in the short term. shorting it you could lose your shirt! and more!

]]> By: The Financial Blogger http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm/comment-page-1#comment-36610 The Financial Blogger Fri, 23 May 2008 10:51:51 +0000 http://www.milliondollarjourney.com/overbought-oil-and-weekend-reading.htm#comment-36610 Thx for the mention! I also bought a few oil barrels to store them in my basement; I plan on buying my Bmer with them in a few years ;-0 Thx for the mention!

I also bought a few oil barrels to store them in my basement; I plan on buying my Bmer with them in a few years ;-0

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