Alternative to CL?

Discussion in 'Energy Futures' started by tyrant, Oct 1, 2008.

  1. tyrant


    CL and QM are still too big for my liking. Is there any stocks or ETFs that has high correlation with Crude oil? Are they shortable?

  2. USO?
  3. Joe6Pack


    Compare crude and corn charts from last year and maybe have a look at corn- and mini-corn futures.
  4. tyrant


    Can we short USO?
  5. Take a look at DUG and DIG. Not sure how closely they correlate to crude, but I'm guessing pretty close.
  6. USO is best if you do not want to trade the CL or QM.
  7. l2tradr


    Just curious, why don't you trade QM? You can leverage it any way you want (just have enough cash in the account).
  8. Your best bet bar none is to trade CL options (futures), you can dial in what level of risk exposure is comfortable for you by choosing the right delta. I suggest this over the equity side due to the much more favorable tax treatment of futures (60% at 15%, 40% as ordinary income). U also know your maximum amount of risk going in.
  9. tyrant


    Thanks for all the suggestions.

    After looking through the options, it seems that USO is most suitable for me because it is liquid and almost move in tandem with CL. Just hope I am not too naive to ask is it shortable? Does the recent shortselling ban include this?

  10. just21


    It is evil to be long oil and short banks. So short oil and long banks is patriotic.
    #10     Oct 1, 2008