Hi, I believe that Crude Oil needs to go back to 40USD, sooner or later. The problem is that it can take 6 or more months. I also believe it cannot fall bellow 10USD. I am trying to figure out how I can best put this theory into practice... I have been playing with WisdomTree WTI Crude Oil 2x Daily Leveraged (Loi.L). I bought at 3,15; 3,60 and 4,20 - averaging at 3,90. If the meeting goes well I can see my return earlier than I thought, but if it goes wrong I believe CL will return to 20USD or less and I will need to wait a few months. My concern is that this being a 2X leveraged ETF, even if I am right and at the end of the year Oil is at 40USD I might not see any profit due to the nature of the ETF and the effects of volatility. Is my concern about this ETF justified? I have at the moment around 10k in Loi.L. How would you play this? Any alternative way to invest in Oil? I don’t like Oil companies because they decline as much as oil when it comes down and do not follow when oil goes up. Thanks, Joaquim
I think it will rise too. Unfortunately for some stupid reason I decided to buy futures that will cause me to lose $14k if CLV20 drops to 32, and an additional $7k every point drop after that. So if it goes to 28, I'm down $42k!!! My advice. Don't do that.
Remember, yer only going to lose it if you sell it. If you can hang on for the ride with the huge capital in your account, then do so.
I underestimated the amount of capital I would need. I would begin to margin call at about 33. I would lose it all If I don't bring more in at about 26.9.
I guess I just cannot get why you would jump into CL with 7 contracts during such a volatile period. I mean, CL was up in the 60s 2 months ago. You've seen the movement since then. You could always hedge it intra-style by shorting 7 contracts in, say, Nov CL. Yer locking in a loss at the current print, but at least you won't lose more. AND, your performance bond requirements will drop to nil.
I can't afford to short anything. I'm maxed out at my margin. Honestly, at the time I was just watching it by eye and planning to close out if it hit a few thousand profit. I was being very foolish. Didn't even realize the end of the trading day (and week!) was approaching.
Charles Schwab. I didn't think it would be because I thought it would be unlikely to hit its all-time low of March 18th given the 2.5 week bull run since then. But now I hear about all this OPEC meeting stuff and that it's set to tank on Monday.
CLV 20 is 34.24 what price did u buy at? You know u can always sell CLX20 at same size or whatever ratio and reduce your margin immediately and protect from downside If let’s say u have 7 long and sell 5 short u still make money on upside but don’t loose as much on downside and can help u get out without being in panic