If You Believe Oil Will Go Up, What Would You Invest?

[misterno]

Would you invest in oil commodity options or any oil stock? Futures, mutual funsd, what investment vehicle would you choose?

 

[YoungOne]

Go long some crude futures.

 

[Banjo]

http://www.theglobalguru.com/article.php?id=199&offer=GURU001

http://www.investorideas.com/CSS/Stock_List.asp

 

[monty21]

I would trade ETFs and ETNs...Def not mutual funds though...

 

[Banjo]

http://www.latimes.com/news/printedition/asection/la-fg-coal25-2008may25,0,189849.story

 

[Derrick1983]

But, do you really gain if Oil goes up? It is causing a lot of problems & uproar all over. Please explain.

 

[Esq Esq Esq]

Alt Energies.

If Oil keeps getting expensive, Alt Energies will be used more and more.

Even if OIL doesn't get more expensive, Alt Energies may still go up (due to cost savings, etc).

 

[Daal]

wait for a signficant correction and marketsufer proclaim oil is done forever. then buy USO with both hands, dont sell till conan obrian says he made money buying crude futures, ignore short-term moves and forecasts, hold for the long-run.

 

[Cutten]

Quote from misterno:

Would you invest in oil commodity options or any oil stock? Futures, mutual funsd, what investment vehicle would you choose?

Just buy oil futures. If the contract is too big (and at $130 per barrel, it's pretty big), use the oil futures ETF - symbol is USO.

Options on crude futures or USO are a good way to leverage whilst keeping risk limited, but the premiums are quite rich so I prefer to just own the underlying.

 

[Cutten]

Quote from Daal:

wait for a signficant correction and marketsufer proclaim oil is done forever. then buy USO with both hands, dont sell till conan obrian says he made money buying crude futures, ignore short-term moves and forecasts, hold for the long-run.

People have been waiting for that correction since $70 per barrel. You can't ride a bull market by waiting for corrections - you end up missing a 50% move, then buy a 10% correction, so you end up paying way higher than if you had just bought it at the market originally. You have to hold onto you nuts and just buy it. If it corrects right after, buy some more.