/biz/ - Business & Finance

>>18597320
>reddit

>>18597320
Fuck I sold 400 puts yesterday at the close.
Only hold 80.
Was this my chance to make it big?

>>18597358
true nevertheless

>>18597320
They fucking lost it all during the rollover didnt they.
They had to sell may contracts at negative prices and couldnt buy june contracts.
ETF is worth zero.
Say it's so...

Question. Are my 80 puts at 3.50 then worth 28000 USD?

>>18597320
so, what does it mean?
t. crypto chad

it dropped 20 percent and they froze trading, it doesn't mean they're belly-up

>>18597425
yeah same, no idea who or what the fuck that is

is it merely halted or is actually kill? I have USO puts and they closed up 500% yesterday....sure would like some more zeroes at the end of that.

>>18597460
halted for news pending

>>18597460
I lost money when they did this to uoil

>>18597478
thats my concern yes.
>>18597468
Whew. A halt is good because it spooks people and will drive prices lower.

>>18597449
>>18597425
I haven’t read the prospectus, but I would guess it says that if the fund becomes insolvent/unmanageable all assets held will be liquidated and a payout made according to some formula.

If the fund is an ETN the payout will just be based on a formula and subject to the credit-worthiness of the note issuer.

unhalted

rehalted? lmao

moving again

>>18597526
sorry low iq here
so basically market go to shit? will we see dow going below 20k again?

>>18597460
May contract?
What strike price?

>>18597425
>>18597449
USO is an oil ETF, but instead of some gold ETF's, they do not actually hold actual oil and store it in a hanger and buying more or less as people buy shares in their ETF.
They instead buy paper contracts, the ones the big boys trade. And every month as the contracts expire they 'roll them over'.
Rolling them over just means selling the ones that are about to expire and buy the ones that will expire the next month.
Usually the oil market is very liquid and there is not much difference between one price or the other, so they dont loose to much money on the roll over.
Now perhaps you've noticed, but yesterday was not a usual day.
This ETF, which holds about one quarter of all the contracts on any given day, did not find an other party to dump their may contracts onto.
Because no one wanted/could actually take delivery of the oil.
So USO got left holding the bag. The very, very heavy bag.
I think they did not manage to sell all their may contracts at a decent price. Maybe they didn't manage to sell them at all.
I think they lost a fortune during the rollover and they will have to announce that today.
Of course, the holders of this ETF will eat the loss of said fortune.
Announcement pending.
Get the wojacks ready.

>>18597720
Based

>>18597720
Alright sounds legit
but yeah bankruptcy sounds fitting

>>18597720
>May contract?
>What strike price?
yeah may 15... $2 strike

every time I hit refresh I'm up

>United States Oil Fund (NYSEARCA:USO) says it has issued all of its currently remaining registered shares; -20.5% when halted earlier.
>USO says it is suspending the ability of USO Authorized Purchasers to purchase new creation baskets until such time as the new USO registration statement for the additional shares has been declared effective by the SEC.
what does it mean?

What does this mean for xrp?

>>18597814
This. Is there anyone who actually knows what the fuck this means and not a cryptoautist.

>>18597873
it will go to 0

>>18597892
It means the ETF has failed to fulfill the objectives outlined by the prospectus it is contractually bound to and will shut down.

>>18597927
What does this mean for the people who copped USO puts.

>>18597814
Why don't they ever write these in normal English that a intelligence depreciated person like myself can understand

>>18597953
They are mostly fucked

>>18597927
It does not mean this. Although this could be coming. Fairly unlikely though.

>>18597892
When you short USO, they create new shares for you to sell at current price. They're suspending that and temporarily halting trading.

>>18597953
A put depends on you being able to sell and buy shares

>>18597961
It means they wont issue more shares till they get SEC approval

Pleas kill yourselves, you are a burden upon humanity

>>18597953
decided to sell mine now at a 4x in case this does go belly up, been burned by getting greedy before.

>>18597720
What's the significance of that? Is it the end of them, great buying opportunity, first domino in the "recovered" economy back to new lows?

>>18597320
My calls are now worthless.

>>18597961
if you cant understand that, you have no business investing in financial markets

>>18598146
1.5billion in retarded money, including myself and everyone itt, has flooded into the etf attempting to create and sell shares, completely fucking up the function of a product that barely worked under normal conditions. 100's of Chinese guys with double PhDs in theoretical calculus are standing in front of blackboard being screeched at by jews as we type.

Interesting times.

>>18597720
rare

>100's of Chinese guys with double PhDs in theoretical calculus are standing in front of blackboard being screeched at by jews as we type

>>18597720

>>18597720
>Gold ETF
>holding actual gold

What does this mean for me as a person who bought a lot of USO? Will the stock be on hold until they're confident it can succeed again?

It's trading again. Lol. For whatever comfort that's worth.

>>18598298
>100's of Chinese guys with double PhDs in theoretical calculus are standing in front of blackboard being screeched at by jews as we type

you got a laugh out of me

>Stop loss triggers LITERALLY at the bottom before strong recovery of the price
I'm never gonna use stop loss again. It's not "stop" loss. It's just loss.

>>18598400
means you get to join thousands of other people in waving your $ goodbye.

>>18598388
Eric Sprott's does.

>>18598400
Uhm honey, no.
Sweety, it means your money is bye bye.
I'd get out now that it still holds 3.2 desu

>>18598473
>ee set ze stop loss?
>trigger eet then pomp eet

>>18598504
>>18598473
Phew, okay. Just lost 80 bucks which balances out with the profits of the other investments I made. Thank you.

>>18597424
>>18597362
u fucked up

>>18597369
Srill moving on RH. Unless theyre just slow on the uptake. Was watching the price jump from 2.90 to 3.10 this morning, then spike to 3.85 then back to 3.13. Definitely something going on with them.

>>18598592
Meh made it out with 5k in gains.
Could have been 20k but whatever.
Shoulda woulda coulda.
Didnt know what I was doing anyway so 5k and 125% profit is still nice.

>>18598211
This WTF I was up 70 dollars on close yesterday on a 2 call for UCO now its worthless and UCO is at 22.

here it comes bros

>>18597460
Its kill. They literally dont have places to store the oil. Its an ETF ran by people in offices. They're going to get raped on rental storage costs for the oil they're forced to take. It's going to be hemorrhaging money until demand exceeds supply. And that wont happen for a while everyone is staying inside and you can't just plug an oil well.

>>18598762
How did UCO jump to $22 plus today from $1.3 yesterday?

>>18598882
Reverse split share. They gave you 1 new priced up stock for every 25 of the old one you had. The rest evaporated into the aether.

>>18598882
Jewish tricks? I have no idea.
>>18598938
How do i find out my new price? It doesnt even tell me it still says 2 dollar call..

What the fuck do I buy

I have $300 to burn damn it

>>18597814
It's quite concerning how nobody seems to know what this means.

A share of an ETF = a bundle of shares of stocks that constitute the ETF. To prevent mispricings where the cost of a share of the ETF =/= the cost of the underlying assets, the ETF issuer (ie the licence holder/manager of the ETF and its constituents, but not at all necessarily the owner of the actual shares) allows designated market makers (Jane Street, Citadel, IMC, etc) to have the ability to collect the individual stocks that underly the ETF, hold those stocks and create a share of the ETF (on the condition that they do not sell the corresponding underlying assets unless a corresponding ETF share is destroyed). Additionally, the same market makers have the ability to buy an ETF and return the underlying stocks.

The point of this is to enable arbitrage to occur to prevent misspricings.

What I think

"suspending the ability of USO Authorized Purchasers to purchase new creation baskets until such time as the new USO registration statement for the additional shares has been declared effective by the SEC."

means is that the ETF issuer/license holder, USO, is suspending authorised purchasers, market makers who purchase the ETF stocks and convert/return it into its underlying stocks, from doing this.

This is probably because people are dying to get out of the ETF because I imagine that some of its assets are worthless whereas some are not and people want to sell the ones that are not worthless. Because of crazy market conditions this is bad for everyone blah blah panic blah.

>>18599243
>$300
Buy yourself some fastfood lol.

>>18597358
fpbp

>>18599259
sorry, I miss-read, actually the market makers are being prevented from buying the underlying assets and issuing new shares of the ETF (ie the opposite, I think).

>>18597320

Hahahaha physical oil, cant take delivery. And they said bitcoin being thin air was a bad thing

>>18599315
So then there wouldn't be new purchases of assets, meaning that they are relying on the ones they have currently? also can market makers be leveraged/use leverage with these assets that they swear not to sell?

>>18599338
I keep peeking in on coinbase to see how disconnected sandbox mode investing is from the stuff that keeps us alive. The shit has basically flat compared to real world volatility. It just limps along begrudgingly whichever direction the dow goes like an 18 year old dog.

>>18597320
It's going great for me

>>18599448
On re-revising I got it a tad wrong, the market makers interface with the issuer/sponsor who seemingly always holds the corresponding amount of underlying stocks. https://www.investors.com/etfs-and-funds/etfs/what-is-etf-how-do-etfs-work/ and https://www.investopedia.com/terms/e/etf-sponsor.asp explain it better than I.

>>18597369
this was premarket el retardo

Friendly reminder that you have a better chance surviving nightclub fire panic than exiting ETF without losses when everybody tries to do the same thing.

>>18598298
>100's of Chinese guys with double PhDs in theoretical calculus are standing in front of blackboard being screeched at by jews as we type.
checked and keked

>>18598344

>TFW woke up and bought USO / UCO 2021 calls for pennies

Just burned $2000 USD

Learn from me

>>18597720
This must be the first time I've actually learned something on /biz/. Thanks fren

>>18597720
Thanks for teaching me based anon. May God make you rich

10 years ago OP would have been bullied off /biz/ for posting a reddit screen shot
Now you’re giving him 70+ posts
Fuck off

https://ftalphaville.ft.com/2020/04/21/1587478056000/Can-the-USO-fund-collapse--/

>>18598762
Stay away from the stock market for the time being. It's totally doing it's own thing ignoring all conventional logic

>>18601025
10 years ago there was no biz board and reddit wasn't that big and cringy to pay attention

>>18601025
10 years ago the average /biz/ (there was no /biz/) user was 12 and trying to fit in with WE ARE LEGION cringe deities. Reddit is pretty gay, but news is news.

What happens to my out of the money puts expiring on Friday?

>>18597720
thanks

Shit...bought 180 shares @ $3.75 yesterday...was hoping to hold it for a few years though

>>18601570
$2.72 right now kek

>>18601591
Yeah but I'm looking to just leave it for at least a year.

>>18601288
How? What's your strike?

>>18598473
NEVER use a stop loss on a volatile market

>>18601669
$1.00 bought deep out of the money.

>>18601725
Holy shit bro. You know how to party.

>>18599338
me on the left top corner

>>18598762
same. I tried to close out my positions when I saw how much % I was up on them....but then I realized it was a few minutes past 4....so market was closed. kek. god damn boomer hours.

Well. I am in deep fucking around with USO. I bought 300 at 3.75 yesterday, 200 more at 3.1. Seeing the absolute negativity, bought 4 3-day puts at 2.5 strike. I can't day trade. Did I hedge well? Bought it at 50 dollars a contract, not far out of the money and the low today was in the money. I am so scared right now.

How does contango fuck you hard? Will the price of the ETF continue dropping while the oil price is rising or is it some kind of reverse split bullshit?

>>18601653
can the fund collapse? I bought 200 UCO @ $1.33 now and after the reverse split im confused

>>18601225
>WE ARE LEGION
crap, that was 10 years ago. Total forgot about that group.

>>18597424
yeah. congrats

>>18602130
>Seeing the absolute negativity, bought 4 3-day puts at 2.5 strike
Hold on to these fren you're gonna make it with only a little damage. I wish you bought 5 puts though that'd cover the shares.

>>18603109
Unironically the same put is at the same price still for whatever reason. So you are of the opinion of just holding everything long and put until Friday and exercising the option while holding onto USO? I am still scared, it is a lot of damage already and I know even if it runs to 0 this week my damage will be 250 dollars more than the immense 10% hit on my portfolio I am taking from it right now.

Dude it’s fucking burning this hurts

What is USO going to do when the june contracts will be negative just 1 day in? They could fall down to -1000$ easily.
That would be a complete loss wouldn't it?

How low can USO go? If it drops to below $1.00 or 00.50c what do? Can I buy 40,000 shares for 20K and make $156,000 when it comes back up to $4.00?

>>18603403
It can go to zero.

>>18603403
If it doesn't liquidate and poof, yes. In theory.

>>18603228
There's no chance the ETF is going to recover to by Friday to be quite honest. At least with the puts you can limit your loss to $1.25 per share... which is quite bad but not as bad as all of it

>>18603418
>>18603428
what are the chances it liquidates? This seems like the opportunity of a life time.

>>18603462
A futures tracking etf is not something to long during extreme contango.

>>18603403
Haha. We have got to be testing the bottom here. I'm thinking of cashing out so I can roll around in a bed of pennies.

Honestly, I'm happy for this experience. It's my first foray into both commodities and options, and I'm fucking around with profits from my side business. Also, planned on this being a long 6-12 month hold.

Feel bad for the dudes who went all in.

>>18603462
>what are the chances it liquidates? It depends on a host of issues. If this oil glut continues for the foreseeable future, there is a very real chance it could be liquidated, as it holds a sizable portion in oil futures.

>>18603435
Well, I suppose. I just never had anything work this hard against me so quickly and sucks I can't day trade out of it. I might just hold and hope it goes up, idk. Worry intensifies. Leave it to the day I stop being a bear and losing every day for the market to go bear and for me to lose even more.

>>18603462
Just go all in and find out

I'm just going to hold until the chinkvirus goes away. As long as this shit doesn't liquidate on me, it should be fine.

I think it just stopped trading again.

I’m in an investment chat who are all FUDing the shit out of me and my one friend for buy USO yesterday. I only bought 40 shares at about 3.80. Why do people have such a hard on with trying to prove you wrong?

If it liquidates I learn a lesson about ETFs and riskier trades. If i get out with profit I’m happy. What is wrong with people

Lawyer here but not /biz/friend, who can I sue over this?

>>18603629

Thinking about it.

>>18603524
By the looks of June futures it seems it'll be this way for a while, at least.

>>18603580
You can't win all your trades my friend. I hope this wasn't a lot of money for you. Take a trade in the opposition direction.

>>18603874
>spread out investment over the next few weeks while oil is in the shitter
>wait for the recovery in 6-12 months
Is this the high IQ move?

>>18603937
yeah, and buy strong companies when they dip (RDS, XOM, etc.)

>>18603937
Again, depends on if you think ETFs will liquidate or not.

>>18603580
Just hold on anon, you only lose what you sell.

>>18597720
You are wrong, they are already in June and July ocntracts

>>18603937
no. you invest in oil while its in the shitter then reap the 1-200% increase in the fall

>>18603902
I guess. I am just upset my inexperience and stubbornness for market to go down lost my 100% gains from March and now I am back to where I started at this point after finally deciding to believe in going long only to get rekt the other way immediately without a day of gain.

>>18603987
Normally. But USO can get liquidated which is what worries me. I guess I will ride it down while holding then I will (with lots of prayer) ride it back up.

>>18603964
>and buy strong companies when they dip (RDS, XOM, etc.)
Too bad they basically don't dip because of FED magic clown money

>>18604164
The trick is to buy them BEFORE the fed pumps magic money into them.

>>18603514
I just took $700 of my trump bux and bought yesterday. Planned on sitting on it for a year or two. Glad I did not go higher though

>>18597720
so you are saying we should buy?

What a day... Everyone hanging in there?

>>18606371
Sill trying to figure out if I should drop $7.5K on USO when goes to .50c.

>>18598938
No. They have to pay out the fractional shares in 2 to 3 weeks.

>>18598298
> 100's of Chinese guys with double PhDs in theoretical calculus are standing in front of blackboard being screeched at by jews as we type.

best post this month. kekd

>>18598473
You can protect your position with puts instead of a stop loss.

>>18606533
FOR THE LAST TIME

YOU CANNOT LONG OIL BY BUYING USO

USO TRACKS CHANGES IN THE CURRENT MONTH'S FUTURES. IF JULY FUTURES ARE MORE EXPENSIVE THAN JUNE FUTURES YOU LOSE MONEY. THE ONLY WAY YOU WIN FROM HOLDING USO IS IF THE SHORT TERM PRICE OF OIL SPIKES.

>>18607052
can you actually explain this to me i've been trying to figure this out. if I buy USO at $0.50 then wait 6 months and sell it at a higher price? there isnt a contract time line is there?

canadian version HOU halted trading twice today and after market closed announced all shares are now worth $0.37/share. this is how the chart looked at close. beware ameribros

>>18607335
USO doesn't hold anything for 6 months, it turns over short-term oil futures

It's not oil company stock or untapped oil or stored oil, there is no inherent value. You are buying shares in a fund (USO) which buys and holds short-term oil futures (June WTI). When the value of those June futures goes up, USO goes up, when they go down, USO goes down. USO only ever tracks the short term price of oil, it never tracks the long-term price of oil. In fact if oil slowly goes up, it will lose real value over time like what just happened.

So for example what we just saw last month.
Let's say USO held 1000 May futures contracts at $30 per barrel when it bought them in early March. Early April, it need to start selling them off according to the rules of the trust. So it sells them over time, but because oil tanked it sold most of them at around $20 per barrel and bought June contracts, except because June was at $30/barrel and they sold at $20/barrel, they can only afford to buy 667 June futures contracts.

The real value of the fund declined significantly. Well now that we just had this massive sell off where May futures went to fucking -$40, it's possible that the June futures that USO is holding could go negative BEFORE it needs to sell them to roll over to July. That's how it can go bust. Even if it doesn't go negative, July futures are going to be around $20 while June are down to $10. So it could go down to only holding 325 futures contracts.

Do you understand why there's no fucking reason or way to make money by holding it?

>>18607547
dude all the people itt talking about holding USO for months is frightening.

>>18607052
Roger. Roger.

>>18607547
ok so, the total value of the fund has droped signifigantly and there is essentaily no reason for it to return to its historcal price, due to this?

>>18607547
So if I bought USO at $4.00 and three months from now it's at $8.00 I didnt just double my money?

>>18607682
The only way the value of the fund increases is if short-term oil futures go up. The fund only holds short term oil futures. It doesn't hold 2021/2022/2023 oil futures. If oil goes up over time it loses money because it's selling cheap oil and buying expensive oil

>>18607703
IT CANT FUCKING GO UP YOU MORON

THERE'S NO WAY TO PROFIT OFF OF IT

I DON'T KNOW HOW MUCH CLEARER I CAN MAKE THIS

THERE IS NO UPSIDE RISK

PEOPLE ARE THROWING MONEY INTO THIS BECAUSE THEY DONT UNDERSTAND HOW IT WORKS

>>18607716
>>18607742
How can short term futures not go up? After the virus is over, they should.

>>18607771
BECAUSE THERES SAUDI OIL TANKERS THAT WILL DUMP THEIR OIL INTO THE US REFINERIES WHEN USO NEEDS TO TURN OVER THEIR JUNE FUTURES

ITS GOING TO FUCKING ZERO

GOOSE EGG

>>18607789
>june
Just wait until fall bro

>>18607742
You'll never get through to these people. I made 1k today with puts on USO. The second people hear about contango their eyes glaze over and they just think DURRR ITS SO CHEAP. Yeah for a reason fucking idiots. This fund is seeing record investment, the pink wojaks are going to be epic when it goes under

>>18607823
June futures are going negative in two weeks

Research how USO works idiot. Get out if you have anything at all invested in it.

>>18607856
When has short term oil been more expensive than long term oil? During shortages? So basically the exact opposite of what's happening would need to happen.

>>18607840
If I have open put contracts on USO and they fold how does that shit work?

>>18607885
Yes exactly. There's going to be round 2 of the oil glut when the saudi tankers arrive and the refineries are already full

>>18607903
you get nothing

>>18607856
>June futures are going negative in two weeks
After today, and the inventory build, I would say negative by Friday close.

>>18607919
Looks like I dump those fuckers asap

>>18598433
What font is this?

>>18607903
Theoretically if it goes to pennies you just close out at max profit. I think its more likely that they could be delisted though if it drops that low so you would probably need to call your broker to figure out the best way to close your puts. Hopefully you aren't holding these puts on robinhood and are using tda or schwab or someone competent

>>18598762
I’ve got 2 uco calls for $5 exp 1/15/21 that now say UCO1. No idea what to do with them. I only had 20 shares of UCO and now they’re gone and I didn’t get shit back for them.

so its not going up tomorrow?

>>18607547
So in a nutshell, USO's optimal situation is buying oil futures in the beginning of a contract period and then selling that same future at the end of the contract period for a profit. What we witnessed yesterday then, was the absolute worse case scenario?

>>18607547
thank you for the explanation but I do detect a hint of the merchant about you

>>18608112
It's quite possible, this would also explain why these prices even came to be. Usually not much people should still be holding long so late in the game. In fact most brokers would not allow you to do that, as a private person. So the people left where probably the big boys. Institutional investors, oil related business, banks and yes the ETFs. Since the ETF wants to track the prices as accurate as possible, they probably just stay to the very end. And since everything is automated, because of muh low management fees, they probably just sold at whatever market price was asked. Maybe somebody was even playing them consciously.

>>18608112
Yes

>>18608044
i showed you my dubs, please respond
im in at 2.89 ... what should my target be for tomorrow?

>>18607921
Nah, wont happen before contracts expire. Someone will always buy the cheap barrels hoping that there is a sudden cut in production during the next 30 days.

So the only possible way for USO to turn around is if 99% of the oil in the world disappears by Fiday?

>>18597320
What are you retards freaking out about? They stopped issuing new shares which is good if you already own them and they’re going into oil futures now.

>>18600351
Thank you based anon. Never shall you touch oil again

>>18607999
UCO reverse split and your shares are now UCO1 & are fractional.

>>18607999
U will receive “cash in lieu” in about 3 weeks. Fuck you — Stonks

>>18611002
This desu, USO isn't going anywhere unless the United States collapses in which case currency would be useless anyways.

Long game is the way to go with USO right now. That being said, retards who tried to short it are getting what they deserve.

>>18611002
>they’re going into oil futures now.
They have been this whole time. The entire ETF is based off of futures. What they're doing is spreading it out from short term futures to slightly less short term futures.

>>18603659
>if i lose money its an learning xp
how have two choices, kill yourself now, or kill yourself when you're destitute.

>>18607856
/biz/: buy high sell low
HOLD USO FOR AT LEAST A YEAR

>>18612075
>just take a 50% monthly hit on contango lmao

Watch the news and close your shorts. A trade war is incoming.

>>18609890
YES. Same with UCO.

Anybody think USO can go back to 2 dollars in the next two weeks? I've got these fucking put contracts that got cucked after they were done halting and changing their underlying. Fucking Jewish tricks.

>>18612237
Get out of all your USO positions it can go to zero, the options can go to zero

>>18612312
Doesn't work that way. I have puts. Puts can be exercised in the over-the-counter market. In fact, a stock getting delisted is the maximum gain situation for an option, because you can buy the stock for pennies, then exercise the option and sell it for that strike.
I'd just rather not hold that long, so I'm hoping USO goes below 2 soon so I can sell these.

>>18599259
Very helpful. Thank you.

>>18612312
What the fuck are you smoking, oil futures went up 2 dollars today and they are artificially driving up stock prices by not making any more shares. How could it possibly go down today?

>>18612434
They changed the fund rules - who knows what they're going to do in the next few days

>>18612470
Right, but how would the stock price go lower with oil futures going up and a limited amount of stocks?

>>18612312
If it gets delisted your puts will go to 0 because there is no one to sell them to. The ETF would be liquidated and that includes your money.

>>18612524
Contango

>>18612526
Your puts can still be exercised in the over the counter market. You buy the OTC stock for pennies, execute your option, and the sucker on the other end who sold them gets cucked.

>>18612524
Two reasons: Its expensive for USO to roll their contracts like they did today. They rebalanced and that costs premiums. Additionally, contango will fuck them because the spot price of oil is lower than the futures, and the futures will go down to meet the price of oil.

>>18612526
In what world would the government liquidate the fucking ETF? The only way that would happen is if the government was literally collapsing.

>>18607052
contrarian investing tells me to do the opposite of what you say because 90% of traders fail
if what you say is common knowledge, that just means it's a smart move after all

>>18612574
It's not common knowledge, retail investors don't know how this etf is structured and are about to lose their shirt

>>18611811
75 shares of UCO averaged at $1.43

>Today‘s Return -$1,438.50
>Total Return +$985.87

???
¿¿¿

>>18612742
UCO isn't USO you knuckles mcspazatron

The prospectus says that no level of losses will cause USO to close. I'm going to cop some at .15 cents and wait until the sand niggers start blowing each other up so I can become a millionaire.

>>18612911
You can't hold it, it's in contango you fucking moron

>>18607742
you are a moron if you don't think it can't go up

>>18612742
I know that but am I up or what? these fuckers locked me out

>>18612949
Oh it can go up, but every month you hold it, it declines significantly in value, even if the oil price is stable

>>18612957
>>18612771
>>18612957
>>18612771

>>18612966
I don't think you understand the geopolitical situation we're in. Oil price will not be stable in the upcoming year. Do you really think that Saudi Arabia, Iran, Russia, and the US fucking A will allow oil to just stay at below $10. Shale in America is going bankrupt which will massively cut off supply in the short term and WTI can easily go back. The sand niggers are gonna nig out and start blowing each other up at some point. Iran isn't going to allow their only supply of income dry up. Shit is hitting the fan around the world and I see oil going back up viciously in the short term once supply starts getting blown up. This is oil we're talking about.

>>18607716
>>18607716
on a somewhat related question, is there something like USO that instead of short term changes in oil, does EXACTLY what you are saying? Holding oil contracts from 2021/22/23? Let a brotha know if you got an Oil ETN I can long like that, thanks

>>18612971
nevermind it just corrected
they converted my 75 to 3 and sold at 21.40

>>18613037
>Oil price will not be stable in the upcoming year.
Nothing in USO has a year from now priced in

>>18601570

>>18613057
No, you need to hold oil companies to benefit from a long term oil upward trend

>>18597720
thanks.
finally a /biz/men that knows how to explain and teach with clarity and intelligence, may the god of wealth visit you soon /biz/bro.

>>18613080
Should be buying USL, not USO. Retards.

>>18613080
I don't think you get how stocks work bud. If some crazy geopolitical event happens, which is fuckin likely, investors will flock to and invest into USO, thus raising price per share, even if contango is factored in.

>>18613037
my dude, if you have been following the cap locks guy you will realize that holding USO for anything outside of immediate month/next month difference is not gonna work due to the contango happening on this...

it doesn't matter if you buy it for .15 if you lose .075$ the first month, and then .0375$ of the remaining the next month, etc. etc., only way to do something with USO is to use options on it, hence what the other half of this thread people are talking about their calls/puts ( calls means you better it goes up, puts means you better it goes down ) but options are tricky because you have to choose a price and a date as well, and that price and date are what determines the cost of the option and all the obvious call/put price ranges/dates are already priced in so those options cost a pretty penny.

Anyone correct me if I am wrong on anything I said here but that might be the condensed quick rundown for babies first USO thread

>>18613229
It's not a business, it's an ETF

What do you guys think of QEP, OAS, CPE, HPR, AMPY, PVAC... as a buy and hold for multiple years strategy. Is it essentially a call option at this point?

>>18597720
We're all gonna make it

>>18613268
How accurate do you have to be to the price on the selected date? Or does it not matter?

>>18613219
>USL
why?

>>18597633
Essentially yes however no.

>>18599243
Buy 300 shares of KOS. Then wait a year and it'll sextuple to become $1800.

I can't believe nobody else is doing this. KOS is where it's at bitches.

>>18599243
A diaper

I can’t wait until retarded USO holders wake up one morning and see a negative sign in front of the USO price. I can’t fucking wait

>>18613344

I mean it is an exact price at an exact date, known as the strike price, this video explains it better, but for the instant answer yes, you have to have a specified price at a specified date when purchasing the option.
Information related to the price and date is what determines your profit or loss on the options you purchased.
Watch this link it will explain options in very basic layman's terms for you
https://www.youtube.com/watch?v=EfmTWu2yn5Q

EVEN THE JUNE CONTRACT CRASHING TO ZERO NOW

All fucking day long on CNBC, all the pundits were crying and bitching
>Don't look at the May contract!
>June is the real price of oil!

Even Brent crude (which is global, not just US) is crashing to levels not seen since 2001.

>>18613572
S&p up .5%

>>18597320
>reddit

>>18611912
Lmao i can guarantee when I lose $150 from this I will not be close to destitute. Why would I ever put more than 1% of my portfolio in a trade? Its not an investment

So which ticker to place a put on TD ameritrade tomorrow, and for what length?

>>18613461
imagine thinking stocks can go negative

TACHYON nodes operators can make their nodes as competitive as much as they also give room for high stake levels among their users.

>>18614745
>bro I will literally pay you to take these shares off my hands
Sounds sweet

>>18598762
How the fuck do options not take into account reverse stock splits?
What kind of jewish trick is this?

>>18598298
People are kek’ing at this post but that is actually how wall street works; chinks, poos and joos working in concert.

>>18607335
Just look at the long term chart and realize it never recovers from big dumps. You don't even need to know the consequences of tracking futures to realize it's not going to moon. USO will likely be dissolved soon.

>>18598298
>100's of Chinese guys with double PhDs in theoretical calculus are standing in front of blackboard being screeched at by jews as we type.
topkek

>>18607921
Is there a way to profit off of this now by shorting it? Explain like I'm 5 please

This thread is my first time venturing into /biz/ and holy fuck is it always this retarded or has the pandemic crash caused tons to idiots to flock here

>holding USO long term

my.fucking.sides.

>>18617481
number go up

>>18617481
The udiots who flocked here brought the iq up by 2 points

>>18613572
June will go negative too. It will contango death down as it approaches us and drop negative too on May 21 as its closed out and July contracts are picked up.

>>18617481
buy chainlink tranny nigger

>>18617481
>look at this d00d
He learned the word contango yesterday, and gets to pretend he's last of the Chicago commodities kingpins.

As if anyone on earth knew what the fuck a US OIL Trust was before Monday...

>>18618758
ive been leisurely day trading USO for years bud

>>18597320
Shorted my shares and lost 40 bucks, oh well it's much better than sitting on it while the price goes into free fall today.

I've got 2500 of these. Should I hold or sell at a loss?

>>18619535
SELL SELL SELL

USO is fucked dude, they're trying to do a reverse split

https://www.marketwatch.com/story/down-33-this-week-biggest-oil-etf-uso-engineers-an-8-for-1-reverse-split-2020-04-22

>>18612084
lol the absolute state

>>18619554
>8-1 RS
Man, imagine being one of the dumbasses who "bought the dip".

>>18619554
p r i c e d i n

>>18619674
Y-yeah haha imagine...

>>18619691
It's fairly obvious that they're doing this in anticipation of the stock going so low that they would be at risk of losing their listing status

>>18619535
im selling at a loss right now, wish i did earlier

>>18619304
>t. T Boone Pickens dabbin on us noobs
Imagine having to lie on /biz/ to feel better?

>>18598298
holy kek

>>18597320
Plebbit fag doesn’t understand shit. Duck off