If I think OIL is going much higher??

What is the best thing to buy??


USO???

 

SLB, BHI, HAL, NOV, RIG, DO, etc.

 

Yes i know those stocks...but what moves the most closely to the price of oil??

 

You can also buy some DIG if you want some oil & gas exposure X2

 

buy USO

 

the most obvious answer is buy oil futures or futures calll options. You get a much better tax structure than equity side plays. If you are unaware, futures get a 60/40 split, 60% is taxed as long term cap gains (currently 15%) and 40% as ord. income, regardless of holding time, (could be seconds for all they care).

 

NOV is one of my long positions for several months, and it's been giving me a headache. Today was a good day for NOV, but I still wonder about this one.

Landis, are you a buyer of NOV?

 

DXO double long (lower volume tho)
http://stockcharts.com/charts/gallery.html?dxo

DTO is the inverse double short
http://stockcharts.com/charts/gallery.html?dto

From what I've read, these two track oil the best.

Steve

 

can you buy oil futures with an options account or do you need a commodities accout?

 

stop thinking. That is how people lose their money. You don't know where things are going. You are blindly guessing.

Stop guessing and trade what you see.