OILU long-term trade - what do you think?

qwerty11 said:
Looked it up:

The last day the funds will accept creation orders is March 27, 2020. Trading in the funds will be halted prior to market open on March 30, 2020. Beginning on March 30, 2020, the funds will not be traded on their respective exchanges, and there will be no secondary market for the shares. On or about March 27, 2020, the funds will begin the process of liquidating their portfolios and may no longer be managed in accordance with their investment objectives. Any shareholders remaining in the funds will have their shares redeemed at net asset value on or about April 3, 2020.
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Well it was nice while it lasted. I am sure NAV will be like $0.20/share on that day... My main investments in oil were stocks for the long run with OILU as a cherry kicker for shits and giggles.
 
XOP just did a 4-1 reverse split.

I had a bunch of that bought for low so we will see if that helps until oil and gas recovers in the Fall
 
farmerjohn1324 said:
So the price increases 4x, but you only own 1/4 as many shares? How does that change anything?
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Your position is exactly the same before and after, they are just trying to keep it liquid with a higher price and value on the shares and avoid what happens if stock trades below $5.
 
farmerjohn1324 said:
OILU. 3x crude oil ETF.

It dropped so much since January. From $24.29 to $0.217. (Or is this because it's only holding is a futures contract that expires in April?)

So when things get back to normal, even if it only goes up to $21, that's a 100x increase. It might take 12 months to get there.

Only problem, I can't tell if the decrease in price is because of the futures contract it holds? Or will it buy new contracts when the April one expires?
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If CL retraces its price perfectly back to $40 or $50, UWT will still only be worth between $0.40 - $0.60 a share.

This is due to the math of compounding gains vs losses. You can do the calcs yourself in Excel in a few steps.
 
farmerjohn1324 said:
The probability of the economy returning to normal given enough time is practically 100%.

Key words... "given enough time."

When things are falling like now, it could be an advantage for those willing to wait a long time to see returns.
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True;
but oil stocks/oil ETFs pay a dividend+ oil does not. Oil can go down a lot more + oil companies can make money sellin' oil by the qt + selling gas. Oil trends much different from oil stocks/ETFs ,which mostly pay a dividend.
Good question farmer jon......................................................................
 
nillionaire said:
So unless I am mistaken, there are no more 3X oil ETFs at all anymore.
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IBD/zacks research said ''you could bet on the oil 3X ETFS'' but that was @ $70 oil.
BUT for many reasons , including but not limited to, NO dividends-- I would not do it.
I do get some thing from my old oil x 3 ETFs charts- but not much. I do more business with XOM, COP,CVX,MRO gasoline. NOT a stock tip.
Jim Cramer suggested only one oil stock per person, so I may or may not use one ETF...………………………………………………………………………………………………………………...
 
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