Easy Oil exposure

[Maverick74]

I haven't studied those market structures and have no idea how to trade them. I understand them to be rather high risk. I didn't say I wouldn't, but if there is a simple way to get close to the same return, then I prefer it. Otherwise I have a large learning curve for a single buy and hold investment.
It's just not my arena. I'm an options trader.

I would get futures, but I don't understand the risk/reward parameters.

Commodities are not meant to bought and held long term. Just pull up a long term chart of the Goldman Sachs Commodity Index chart. It ain't pretty. And that's not because commodities always go down, it because of the cost associated with holding any physical long term whether it be copper, gold, corn or oil.

 

[vanzandt]

Commodities are not meant to bought and held long term. Just pull up a long term chart of the Goldman Sachs Commodity Index chart. It ain't pretty. And that's not because commodities always go down, it because of the cost associated with holding any physical long term whether it be copper, gold, corn or oil.

Hey Mav...
Whats the best way to play the $OVX long?

 

[Maverick74]

Hey Mav...
Whats the best way to play the $OVX long?

There is no direct instrument. The actual index pricing is derived from USO options. There is no way for you to capture the 30 day fixed term structure. You can buy ATM USO options but you can't effectively isolate the vol.

 

[Overnight]

There is no direct instrument. The actual index pricing is derived from USO options. There is no way for you to capture the 30 day fixed term structure. You can buy ATM USO options but you can't effectively isolate the vol.

Calendar spreads make me horny.