I get what it means but I was understanding that today was the last trading day for it.
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- Thread starter SoapyCy
- Start date
Wonder if the options were today and the futures are tomorrow. My background is in the CME but have only messed with oil a little. Options always go first. When you are on top of the expiration, you also have deliveries happening, when people honestly request delivery or want to. Not sure where the delivery point is for crude.
Does anyone think it'd be a good investment to get in to USO now? I could see it getting very volatile short term, so could see the price get below 3, or even close to 2. Additionally, it can't get much lower.
It can very easily go to zero, so no. You are locking in loses every month because of these spreads and volatility. So unless you like losing money avoid the ETF. Here is a detailed article I suggest reading.... Looks like you aren't the only one trying to pour good money into this thing. It also has a 30 cent premium to its real value so you lose that pretty much instantly unless the premium continues higher (which should be virtually impossible but perhaps not after not issuing new shares).
https://www.zerohedge.com/energy/us...-oil-hedge-fund-manager-warns-etf-may-implode
And this is what Pierre Andurand is most concerned about - that the link between the massively dominant Oil ETF and the actual underlying markets is about to snap and leave a gaping hole at CME...
I think the CME might have no other choice but to close out the ETFs positions. It cannot take the risk to have negative prices before the roll and be on the hook.
This shock is real. Be very careful out there. We are going to hear about crazy losses in the days and weeks to come
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Just to drive this point home, ETF's and ETN's etc are NOT the real thing. Here is another article. This one did blow up.
https://www.zerohedge.com/commodities/third-largest-oil-etn-liquidating
and now all those who lost about 80% of their investment in the past few weeks, well they are now getting a few pennies on their dollar.
So what happens next? Barclays - who suckered in thousands of retail investors and is now giving them a small portfion of their investment as it closes up OIL shop - explains.
https://www.zerohedge.com/commodities/third-largest-oil-etn-liquidating
and now all those who lost about 80% of their investment in the past few weeks, well they are now getting a few pennies on their dollar.
So what happens next? Barclays - who suckered in thousands of retail investors and is now giving them a small portfion of their investment as it closes up OIL shop - explains.
If you bought it at $2 and it went to $1, and also bought Tesla at $750 and it went to $400 - which one dropped more?
Well it looks like it has been wild still in the oil markets. Somehow the May contract (that expires like in 5 mins) is almost higher than the June contract. So it may look like oil is up $47 / barrel. But then you look out the curve and it's getting killed again today. The June contract has been cut in HALF today and the rest of the curve is down big. This is really a bigger move than yesterday. I expect the oil stocks reflect that today but haven't checked yet.
Last few days has not seen that spike up in the last 30 min. No one must be buying on the dips anymore.
Yeah, it's like in HS when you were peeing and the girls ran into the locker room. You just can't stop midstream once it's primed. Or you would pee all over yourself.
Women in the locker room or you peeing on yourself? One is good, the other......well.....not so much.
Won’t comment on the peeing on oneself, but what about this?
You’re on the toilet at work..finally getting settled in for your afternoon poop..and someone walks into the bathroom.
You’re on the toilet at work..finally getting settled in for your afternoon poop..and someone walks into the bathroom.
Is it a co-ed bathroom?Won’t comment on the peeing on oneself, but what about this?
You’re on the toilet at work..finally getting settled in for your afternoon poop..and someone walks into the bathroom.