Maybe not the brightest idea, but filling up my tank yesterday I was thinking to myself.. dang, why I am not LONG QM, its a "can't lose" proposition since it is automatically hedged.
How does trading QM "automatically hedge" your Gas tank? I can see maybe locking in a delivery for home heating oil might actually help. What if you are long QM and it goes down?
The other day, gas stations owners had to move up the prices almost 3 times a day. Gas prices are going up right before our eyes. With the expected price of gas to reach $3 by December, you will be paying a lot more for gas. Thus, go LONG 1 QM contract on a well margined account, and just let it sit there. That way, you will recover all the increased gas prices at the pump.
I would think thats what a lot of heavy fuel users are doing. My fleets a little too small for that strategy. Not a bad idea tho. However it is entirely possible that the price of oil could go down while gas prices continue to rise for awhile.
just go long some COIL calls haha just kidding(maybe). Commodities , currencies are good mkts to stay away from - for everyone