OILU long-term trade - what do you think?

Discussion in 'ETFs' started by farmerjohn1324, Mar 30, 2020.


  1. Well it was nice while it lasted. I am sure NAV will be like $0.20/share on that day... My main investments in oil were stocks for the long run with OILU as a cherry kicker for shits and giggles.
     
    #21     Mar 30, 2020
  2. XOP just did a 4-1 reverse split.

    I had a bunch of that bought for low so we will see if that helps until oil and gas recovers in the Fall
     
    #22     Mar 30, 2020
  3. So the price increases 4x, but you only own 1/4 as many shares? How does that change anything?
     
    #23     Mar 30, 2020

  4. Your position is exactly the same before and after, they are just trying to keep it liquid with a higher price and value on the shares and avoid what happens if stock trades below $5.
     
    #24     Mar 30, 2020
  5. shatteredx

    shatteredx

    If CL retraces its price perfectly back to $40 or $50, UWT will still only be worth between $0.40 - $0.60 a share.

    This is due to the math of compounding gains vs losses. You can do the calcs yourself in Excel in a few steps.
     
    #25     Mar 30, 2020
    murray t turtle likes this.
  6. %%
    True;
    but oil stocks/oil ETFs pay a dividend+ oil does not. Oil can go down a lot more + oil companies can make money sellin' oil by the qt + selling gas. Oil trends much different from oil stocks/ETFs ,which mostly pay a dividend.
    Good question farmer jon......................................................................
     
    #26     Apr 1, 2020
  7. So unless I am mistaken, there are no more 3X oil ETFs at all anymore.
     
    #27     Apr 2, 2020
  8. Uwt
     
    #28     Apr 2, 2020
  9. %%
    IBD/zacks research said ''you could bet on the oil 3X ETFS'' but that was @ $70 oil.
    BUT for many reasons , including but not limited to, NO dividends-- I would not do it.
    I do get some thing from my old oil x 3 ETFs charts- but not much. I do more business with XOM, COP,CVX,MRO gasoline. NOT a stock tip.
    Jim Cramer suggested only one oil stock per person, so I may or may not use one ETF...………………………………………………………………………………………………………………...
     
    #29     Apr 2, 2020
  10. shatteredx

    shatteredx

    #30     Apr 2, 2020