XOM if the Dems/Obama wins

Discussion in 'Stocks' started by Szeven, Feb 18, 2008.

  1. If i think that Obama will win the US election, and start pillaging XOM and other profitable oil companies, what is the best way to set myself up to profit from a downward move, while protecting myself from an upwards move?

    My best thought so far was Long 1x shares, short 1x 95 or 100 calls, and use that prem to buy 1x 75 or 80 puts. I dont feel like that enough exposure to the downside, but I dont think straight up shorting is the best way. Help a daytrader take a smart position!

  2. I'm just another daytrader so I'm hardly the guy to help, but with that said, what's wrong with straight out buying the Jan 09 $80 puts for $7?
  3. I guess nothing. I was just hoping there was a fancier way to expose myself to unlimited downside potential for less that $7/share.
  4. AAA30


    Deposit some of that cash you made last year with a major BD and try to buy a credit derivative on their debt that will pay out on a principal reduction or a credit rating downgrade. Or buy some xom bonds and buy some multiple of derivatives on it. Just a thought. I have no idea how to really go about doing this.
  5. Over my head :(
  6. tortoise


    Obama won't win if there's a shred of truth to the gay thing -- and there are enough wisps of smoke here to suggest the presence of a fire. Look for the Republicans to drop the G-bomb sometime in late September/early-Oct...
  7. You got that right!
  8. I'm not so sure Obama will win the Presidency. He will take the Dem. Nomitation But I think it will be a very close race, however McCain will win.

    The Dems. are destroying their politcal structure with the Hillary/Obama race. Internally the Dems are fighting among themselves.

    I believe if OBAMA wins, you will have a lot of On the Fence Conservitive Dems vote for McCain.

  9. Obama will not be the Democratic nominee. Hillary will be the nominee if she has to destroy the Democratic party to do it. The Clintons own the Democratic machine and she is the machine candidate.