USO liquidation?

[mwgwin]

Please help a dumb rookie here. When the fund is "liquidated", does that just force a market sell option for anyone who holds that fund? I am one of the apparent numbskulls who bought this expecting it to be a package of representative oil companies... I now hold about 4000 shares at a basis of $3.65. Put in limit orders to sell it all when I recover my money... but now I am scared it is just going to tumble to zero...?

 

[systematictrader]

USO does not track the spot price of oil. Unlike GLD, where you are actually buying gold, USO holds futures contracts. It is not the same thing. It was always a shit investment, regardless of price, but here is the real kicker. USO is unable to create more "units" so it is now trading a a 20% premium of its NAV.

If CLM0 drops below $10, I believe we will see USO forced to liquidate.

Forced liquidate means what? Give everyone back their shares ? At current price ? Or means the thing goes to zero like a bankrupt company and everyone simply gets the middle finger?
Elaborate please

 

[systematictrader]

Please help a dumb rookie here. When the fund is "liquidated", does that just force a market sell option for anyone who holds that fund? I am one of the apparent numbskulls who bought this expecting it to be a package of representative oil companies... I now hold about 4000 shares at a basis of $3.65. Put in limit orders to sell it all when I recover my money... but now I am scared it is just going to tumble to zero...?

XLE is the etf for oil companies
Type xle holding u will see the companies in it

 

[systematictrader]

Ive done poorly overall trying to trade oil stocks & ETFs this past month. I made a tiny win APA but lost hundreds trading UWT DWT UCO USO etc.

There is likely a trade in oil somewhere but I have sucked trying so I'll hold off for now.

Pot & casino stocks have been better for me MGM PENN TLRY CGC there's a joke in there somewhere lol

good one,”

 

[mwgwin]

Thank you. I see that now... sigh.

 

[mwgwin]

Forced liquidate means what? Give everyone back their shares ? At current price ? Or means the thing goes to zero like a bankrupt company and everyone simply gets the middle finger?
Elaborate please

Id like to know the answer to this as well.

 

[Sig]

Forced liquidate means what? Give everyone back their shares ? At current price ? Or means the thing goes to zero like a bankrupt company and everyone simply gets the middle finger?
Elaborate please

It's in the prospectus. Why don't you give it a read and fill us all in?

 

[mwgwin]

XLE is the etf for oil companies
Type xle holding u will see the companies in it

Looks like OIH is oil, XLE is Energy, but I am picking up what you are putting down.

 

[luisHK]

I am one of the apparent numbskulls who bought this expecting it to be a package of representative oil companies... I now hold about 4000 shares at a basis of $3.65.

That´s OK, I read UFO so went long as pretty sure the aliens are coming. Stock market is confusing. Holding my shares anyway, with a little luck once aliens land they´ll scoop up all our oil. We might be able to retire on that one.

 

[FroggerMan]

Forced liquidate means what? Give everyone back their shares ? At current price ? Or means the thing goes to zero like a bankrupt company and everyone simply gets the middle finger?
Elaborate please

As Sig said, you can read the prospectus to see under what situations the fund would liquidate it's holdings. If it did so, it would then distribute any remaining cash to the shareholders shareholders. It would be unlikely for it to go to 0 so you would get something.