Trade tip for my Politico Bros

vanzandt said:
Offshore storage rates have quintupled in the last 3 weeks. Tanker companies are raking it in. That's what we should have bought stock in.

https://www.spglobal.com/platts/en/...the-mantra-as-oil-storage-freight-rates-surge
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Yeah but as companies they are so risky given no spot business going on like before although bunker fuel is the largest cost segment in operations and it is dirt cheap. Mixed bag there...

TK is at $3.00/share (Teekay)

FRO Frontline is a few dollars off of its high in past few years.

TK seems safest bet for now... going to grab some and see if it can back to $6. Worth grabbing 1000 shares and ignoring for a year Looking for $6 next year maybe... not a major profit home run but cheap play on oil
 
was about to bump this thread..oil looking good here.. I generally don't hold oil much so looking at USO again. Problem is, are we priced in all the way through May shutdown?
 
Here4money said:
was about to bump this thread..oil looking good here.. I generally don't hold oil much so looking at USO again. Problem is, are we priced in all the way through May shutdown?
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Oil looks solid at $20 a barrel for a while so any entry now has to be for the Fall minumim. It could dip and play with $15 if lockdown really starts to grind us to a halt but the right stocks will still hold some value. USO is l ike a LEAP Call on oil with 2 years to expiration.

My main plays are still Exxon (XOM) and Royal Dutch Shell (RDS) and MRO and some ETFs like UCO and XOP.
 
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El OchoCinco said:
Was looking at some hedges or plays in case we have another small dip.

With IV so high I was not going long Puts at this moment but figured a slightly OTM SPY FLY was just the ticket:

View attachment 222338

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If market runs higher from here, I have plenty of longs to cover this cost and if we rumble around and chop then I can take something out of it. Strike selection was difficult but who knows....$10 wide FLY for $0.72...
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As I said was originally filled on this FLY at $0.72.


Put in an order to close it at $1.40 and got filled at the close.



Average VOLS were about 53 - 55% on these strikes fro the FLY.

I believe I posted originally they were in the 80% so a demonstration of using FLYS as one wya to play a vol collapse without shorting the straddle outright.

Not a home run trade obviously since I only did 10 but still good for sharing knowledge.
 
Thank you CHINA!

Oil is more manipulated than the stock market so oil at $20 causes a lot of behavior to support it. Once all the storage is used up then the production will start to shut down. A process of a several months and that is about when we should all be emerging from our Corona cocoons....

Oil portfolio up nicely past 3 days...hope it found a floor.
 
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