One point I heard that pushes this effect is that some would believe its more economical to shell out their oil and get it off their hands than pay $300K to shut a well only to have to reopen it in a few weeks time when the world opens back up.NRD09 said:
in my probably naive and very simplistic way of thinking, it goes like this:
the world uses a ****ton of oil. Just not right now. Nothing fundamental has changed, we will go back to using a ****ton of oil as soon as the world starts back up. Just nobody knows quite when that's going to happen. This isn't a paradigm shift of energy sources or ways of doing business, everybody's just staying home for a couple months. That's why nobody wants to rush to Ch11 or shut in wells that are going to have to be worked over if they stop flowing, because the current dearth of demand (and the storage issue being caused by it) is very temporary. Happy to hear any arguments to the contrary.
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Last: 37 min ago by BlueTaze
Too bad TSLA puts are so expensive
Perhaps oil companies aren't buying futures from bank speculators who have no way to take delivery. What does a banker do if he is holding a contract to accept tons of barrels? Pay someone to take it....
That is lovely. SPY low of day
Anyone asking about shorting oil today needs to stop. Your mind set is chasing based on sensation and speculation. Going to lose your ass doing that.
DIS at the bottom of it's wedge right now.
I just got back from getting an oil change and thought the world was falling out and shorted MTDR. Lost some change after it went green. Still don't understand how it traded back up. Can I get an answer in laymen's terms why independents didn't fall out to all time lows with the price being negative?
Still some pain ahead.
Oil storage play NAT is getting nice action right now.
Maybe better question to ask is what banks are exposed to energy hedges? They were just talking about this on CNBC
no doubt. Doesn't mean trying to catch the knife blade is smart for a retail investor/trader.AggiePeeps06 said:
Still some pain ahead.
When you get these alerts and they don't pop right away, do you then ignore them as a good trade opportunity? These have plenty of time, so not sure how/if that would affect your normal thought process. Down to $2.64 ask as of now.IrishTxAggie said:
They're doing it again...
It's all subjective. If it's some small or mid cap, I won't hold them if they don't pop. If it's betas, I take it in stride and have my s/l setkhkman22 said:When you get these alerts and they don't pop right away, do you then ignore them as a good trade opportunity? These have plenty of time, so not sure how/if that would affect your normal thought process. Down to $2.64 ask as of now.IrishTxAggie said:
They're doing it again...
Champ Bailey said:IrishTxAggie said:
STNG
I'm in on this as of 15 minutes ago. Already up 1.5%.
Up 9% now. Will hold for the next day or two at the least to see if the trend continues.
GILD puts starting to take off.
NAT getting aggressive call buyers on the 5/15 $5C at .5
So why not buy UCO?
Derivatives never behave the way you want them to.jbeck3487 said:
So why not buy UCO?
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I amjbeck3487 said:
So why not buy UCO?
Getting off oil for a second, what are y'all's thoughts on QCOM?
Now it is time to see what the Trump presser will do to any long or short positions. I'm wondering if he could use oil as a sign of the economic danger of slow rolling the recovery.
I'll answer the first part of your question on why I think May CL was trading negative. There must've been funds that were long (God only knows for what reason) and today is settlement day. Like the majority of commodity traders, they have no intention of taking physical settlement (or maybe were even too clever and thought that they could take settlement and found out that was zero storage capacity anywhere).
Then guess what happens, you are sitting in your high rise in New York or Chicago trading numbers on a screen and suddenly you have millions of physical barrels of oil coming your way. That is a real **** sandwich and you end up begging (paying -$32 or whatever) to someone else who at least has a field where they can dig a hole to store this oil, to take it off your hands.
Then guess what happens, you are sitting in your high rise in New York or Chicago trading numbers on a screen and suddenly you have millions of physical barrels of oil coming your way. That is a real **** sandwich and you end up begging (paying -$32 or whatever) to someone else who at least has a field where they can dig a hole to store this oil, to take it off your hands.
Man, I feel ridden hard and put away wet. I managed to fineagle a $2k profit out of today, but with massive massive swings. Making 5k on USO, losing $2k on AMD, squeezing an in and out put on JPM. All while watching the energy market crumble around us. What a life. Feels like I'm living in a movie
texagbeliever said:
Now it is time to see what the Trump presser will do to any long or short positions. I'm wondering if he could use oil as a sign of the economic danger of slow rolling the recovery.
Trump to announce new stimulus strategy to pay US residents to drain their pools and refill with crude. If that doesn't work, local authorities can authorize the use of retention ponds.
What contracts were you trading on USO? My contracts in July hardly moved
I traded 5/1 $4 and $4.5. They had huge volume flow on Cheddar Flow repetitivelyAggiePeeps06 said:
What contracts were you trading on USO? My contracts in July hardly moved
Got it. I needed to be closer to expiration. Guessing you were short?
You can trade commodities with most brokers.
You can either go long or short futures or you can trade options on those futures contracts.
You can either go long or short futures or you can trade options on those futures contracts.
anyone here follow EXEL? Up over 20% today.
CallsAggiePeeps06 said:
Got it. I needed to be closer to expiration. Guessing you were short?
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