I have been averaging into this over the last couple of days as crude oil made new lows. Does anyone else feel that this is a no brainer to buy this ETF (crude oil double long) at these levels which coincides with oil in the $70 range. Even if it takes a year to pan out, there is no way in hell that oil will stay in the $65 to $70 range forever. The only way it goes lower is if there is actually a great worldwide depression and there is extensive demand destruction.
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Dxo
- Thread starter jsv416
- Start date
Quote from jsv416:
I have been averaging into this over the last couple of days as crude oil made new lows. Does anyone else feel that this is a no brainer to buy this ETF (crude oil double long) at these levels which coincides with oil in the $70 range. Even if it takes a year to pan out, there is no way in hell that oil will stay in the $65 to $70 range forever. The only way it goes lower is if there is actually a great worldwide depression and there is extensive demand destruction.
Waiting for it to drop below $5.00 before buying, oil I believe will bottom somewhere between $40-$50.
Does the attractiveness of DXO get better as it gets cheaper?
I'm just asking because as a double long does the profitability potential not compound the closer it gets to zero?
I'm just asking because as a double long does the profitability potential not compound the closer it gets to zero?
Quote from Burns' Suit:
Does the attractiveness of DXO get better as it gets cheaper?
I'm just asking because as a double long does the profitability potential not compound the closer it gets to zero?
In short yes, as a smaller price change equals a larger percentage gain (or loss). IMO at this price it's worth it to throw a couple grand at it if you are long oil