/biz/ - Business & Finance

>>17945083
I loaded up on Exxon, they have the best dividends.

They shouldn't go belly up. I hope anyway.

>invested in an industry that was in decline before the pandemic hit
Make sure to buy some Ford while you're at it

>>17945112
how much u buy? i will only have 10K, but also only around sept. do u think it will stay low for that long?

>>17945345
bumperino

Just bet on the benchmark price. Forget about individual oil companies for now.
>USO for standard tracking of crude price
>UWT for 3x leverage crude price

If you invest in oil companies sometimes they don't follow the benchmark price quite as closely as you might like. They are also subject to sell offs on earnings misses and bad nav. By betting on oil price itself, you are not going to be exposed to that in addition to potential bankruptcies if you're trying to go long on small cap shale producers or something. The Saudis can just barely tolerate sub $20 for brief periods. Russia needs things to stabilize at least in the $30s. How long they can hold out is anyone's guess. Russia started this because they're making a power play for market share. Saudis retaliated by dropping their sell price hard. A popular theory is this is in service of running US shale out of business, and I think that's a component of it, but on a more macro scale it's about upsetting the OPEC apple cart as much as possible and hopefully coming out the other side of it on the winning team.

>>17945083
If I buy a stock, there is a commission. If I hold that stock there might be a withholding tax. If that stock pays me dividends I have to pay capital gains tax. If I sell that stock there is a commission. If I buy a 3x leveraged ETF it could reverse split. If I hold a 3x leveraged ETF than I will most certainly lose money to decay. If I buy an index which tracks futures, I could lose money to negative roll-over during contango.

How can I avoid all this shit and still make money on the inevitable rebound of oil? Go to your nearest logistics facility (if you live on the coast this means the port where all containers are received) and check the waste area. There will almost guaranteed be disposed standard blue barrels. Take them home (you'll need a truck) and fill them up with gasoline. Gasoline has unlimited shelf life if you avoid evaporation (lid needs to be sealed TIGHT). When gas prices inevitably rise, sell the gasoline to your neighbours. Soon, you'll begin to build up a roledex of clientele. If you store $5000 of gasoline right now, you can most likely sell it for double next year. Are markets moving slow? Take advantage of different state excise taxes and sell Texas oil in Cali.

I've been doing this for 10 years now, and as far as I know, there is not even an IOTA of legalese that can be used against me. I'm prepared to defend myself should some uppity DA try and take down my all-American business.

Accusation: "You are illegally moving goods over state lines"
Response: "Freedom of motherfuckin movement. Constitution. Read it bitch!"

No taxes, no commissions, no reverse splitting, no contango, no risk of losing deposits if my brokerage goes bankrupt.

Your choice.

>>17945083
Buy calls on some of the Canadian oil companies that got raped by this. VET or OVV were beaten down so bad that people must definitely think they're going bankrupt, the premium won't be that much and they could 10x their share price if oil goes back close to the price it had a month ago (not that I think it will).

>>17948531
why the fuck would you put money in Canadian companies in extremely poor financial situation. OVV is potentially going to default and has shit management. Seriously, when it comes to the oil slump, don't just click "All" on the chart and look who dropped the most.

Put money in Canadian OCs who can weather this storm (HSE,SU) both are integrated, SU more so, so they don't just make money off of extraction. Both, especially HSE have enough cash to last this oil cringe era. SU has phenomenally low cost of extraction for Canada (somewhere between $23-27/bbl)

>>17945083
XOM and EOG. See you on the moon

>>17948785
My only two oil positions are 35 shares of VET and a 17APR20 $17 call on SU. Neither position is even worth exiting because of absurdly high Canadian brokerage fees and shit liquidity so I am just holding on to them like a lottery ticket in case Trump nukes Saudi Arabia and cures Corona before they expire or go bankrupt.

I have no faith in any oil company right now, I don't think OP should buy any, but if he is right about oil surging he will make more with a riskier play like VET.

>>17948531
This is the maximum risk possible and not at all worth the exposure.

>>17945345
i'd be surprised if corona lasts until september and i don't think oil companies will stay low without corona