Shorting OiL

Mark Hansen · Dec 30, 2002

at some point in the future,
I would like to short oil prices;

but not being a futures player,
are there some stocks,
that would amount to a similar play?

thanks
Mark

RainMaker3000 · Dec 30, 2002

You can try OIL SERVICE index (OSX) options
I would test the correlations between OIl futures and OSX before putting on a trade

GATrader · Dec 30, 2002

Chemical co. use a LOT of petrol, so they should have an inverse relationship.I'd suggest airlines but I am sure you like you moneyin your acct. not in someone else's but think of users of petrol and go long.

cheeks · Dec 30, 2002

Here are a few oil service stocks

HAL
SBL
BHI
RIG

However, for a play on oil, I would prefer the futures.

AAAintheBeltway · Dec 30, 2002

The problem with using the futures to play a potential price break is they could double while you are waiting. Then what do you do? The safer way would be to short some E&P companies and buy OTM calls. Or you could buy puts on the crude futures contract. If you can get the timing right however, you will definitely get the most bang with the futures.

bone · Dec 30, 2002

Man, oh man. Unless you can deliver the underlying, why on God's green earth would you short a futures contract on something that will only get richer given the problems in Venezuela, N. Korea, Iraq, etc. etc..

Do a Bear Put options spread on the March or April contract and hang on for dear life.

I've got to think that you'll be able to sell it dearer in the not so distant future.

Minime · Dec 30, 2002

Good commentary on the current oil crisis:

http://www.financialsense.com/Market/commentary.htm

Excellent website pointed out to me today by someone on another thread.

profitseer · Dec 30, 2002

Quote from bone:

Man, oh man. Unless you can deliver the underlying, why on God's green earth would you short a futures contract on something that will only get richer given the problems in Venezuela, N. Korea, Iraq, etc. etc..

Do a Bear Put options spread on the March or April contract and hang on for dear life.

I've got to think that you'll be able to sell it dearer in the not so distant future.

In order to make oil you need fossils, and the only way to make fossils is for things to die.

If we go to war with Iraq, and the death toll is high, the price of oil should come down. Unless man learns to live in peace, a fresh supply of fossils for fuel is almost guaranteed.

Bankedout · Dec 30, 2002

Quote from Mark Hansen:

at some point in the future,
I would like to short oil prices;

but not being a futures player,
are there some stocks,
that would amount to a similar play?

thanks
Mark

OIH is an exchange traded fund. I don't know how closely it mirrors oil prices though. ETF's have some nice benefits. They help to insulate you from company specific news, and also can be shorted on down ticks.

Banker