Cheapest way to bet on crude oil spot prices?

[SteveM]

OP, buy a basket of the high-yielding MLP CEFs....it will be a rocky ride, but you will likely collect some dividends, and many are trading at wide discounts to NAV right now.

I own SZC and FEI....there is certainly room to the downside but I think over the next couple years things will stabilize in the global oil markets.

 

[tonyf]

OP, buy a basket of the high-yielding MLP CEFs....it will be a rocky ride, but you will likely collect some dividends, and many are trading at wide discounts to NAV right now.

I own SZC and FEI....there is certainly room to the downside but I think over the next couple years things will stabilize in the global oil markets.

That's a great idea but I hate dividends as a foreign investor subjected to WHT

 

[tonyf]

None o

Why would you want to buy oil? The fact it went down a lot doesn't make it a good buy. It's likely going down to 5$ a barrel.

What I buy is none of your business really....unless you are my wife and then we have more serious issues seeing you on this forum.

 

[tonyf]

If you are bullish on oil long term this would be a way to have exposure while avoiding the "contango" costs. Obviously you would be bringing in other risks such as solvency issues for the particular companies.

In general, I would always recommend investing in the company rather than the commodity.

After much thinking, the cheapest way of betting on oil seems to be buying Norwegian Krona. The correlation is staggering.

 

[JFonseca]

Hi,

I have exactly the same problem: how to make money on the oil return to 40USD? I have started this thread: https://www.elitetrader.com/et/threads/crude-oil.342757/

I am using WisdomTree WTI Crude Oil 2x Daily Leveraged (Loi.L) but would like to listen alternative ways of playing this.

Thanks,
Joaquim

 

[tonyf]

Hi,

I have exactly the same problem: how to make money on the oil return to 40USD? I have started this thread: https://www.elitetrader.com/et/threads/crude-oil.342757/

I am using WisdomTree WTI Crude Oil 2x Daily Leveraged (Loi.L) but would like to listen alternative ways of playing this.

Thanks,
Joaquim

That threads stinks of high risk gambling...

 

[JFonseca]

That threads stinks of high risk gambling...

I know And in the middle of all that talk my post got unanswered and forgotten... still trying to figure out if the way I am trading this oil situation is reasonable or not... to me it makes sense, but I am highly concerned about about etf depreciation due to volatility before oil gets to 40USD

 

[Overnight]

WTI or Brent - what is the most cost effective way of making a rolling bet on the spot price?...

Hmmm. What is the spot price of oil right now? I did not know oil had a spot price, like gold in London.

 

[SimpleMeLike]

WTI or Brent - what is the most cost effective way of making a rolling bet on the spot price?

Say you want to buy oil at $25/gallon with a view of prices reverting back to $40 at some point, but you are not sure when.

(p.s. answer to this question may sound obvious to some as futures, but I am equally looking for other offerings such as ETFs, CFDs.... to assess the cheapest option of placing that bet)

ProShares Ultra Bloomberg Crude Oil (UCO) buy and hold this if you want to swing trade crude oil

 

[Same Lazy Element]

buy oil at $25/gallon

yours! what's your size?