Thank you! So, if you thought oil price would be flat for a year, would you buy SCO, or not buy because of the compounding decay?
Thank you- very interesting! Then since UCO goes down when there is contango, and up where there is backwardation, does that mean the reverse for SCO- that SCO will rise when there is contango, and fall when there is backwardation? I know there is tracking error over time for the daily double compounding, just trying to figure out if there is a way to take advantage of contango. But it doesn't seem like SCO has done that well most times.
Can you explain how this contango works? How does it affect USO and UCO price? I notice in the past six months BOTH SCO and UCo are down.
Are there funds that do this?
Yes, it seems like there would be no CODI for someone buying now. For people earlier in the year, who knows, but IRS won't care.
Total returns on the bonds will be 1500% from the low this year to 2020. Truly a life-changing opportunity for those with the foresight (I did not have it).
I thought 30 cents, for a break even of 2.20, was solid but now my capital is locked up for another month and a half and the bid/ask is so wide I can't buy them back. Going to be selling covered calls at 2.50 strike for July, can only hope we stop dropping so fast so there is some premium there.
How much lower is this really going to head next week? It seems like today's news should have baked in disaster and the drop to this level, we will not drop more?
This has always come back before- maybe I will just shut computer down for a while.
Unbelievable. Just goes lower every 5 minutes.
Any ideas? Seems like the worst is just about priced in at this point?! Maybe?!
If one bought 200K shares at 3, and sold $5 calls for 50 cents, that is total loss of $2.30 per share at price of 20 cents. So, loss of 460K, on 550K = 90K!!!! And 50K at 0.