RD today broke above the upper Bollinger band. I hope it continue ascending from here.
In the short-term RDS-B does not seem to be like a good trade. Yo you should really check out awe-SOME-stocks, they seem on point with their stocks.
RD is leading the Majors this summer, first to do a higher high turn up while others have not broken upward.
Almost time for me to sell my A shares and buy B shares. I'll give it a little longer on the hope that the gap closes even further
Buy both and stop asking. Sheshhhhhh
Question is it better to buy the B shares if you plan on not reinvesting the dividend?
Oil is rebounding with the down turn of production in the us. This might be a good sign of a good bounce in rds-a next week. Any thoughts from retired or ray and any of the experienced posters on the board.
RDS closed yesterday above 52.50 so the puts that I sold last week expired worthless and I kept the $0.55/share equivalent ($0.54+/share after commissions) that I sold them for.
For comparison, had I bought the stock rather than selling the puts, the gain would have been about $1/share...however, with the puts, I had no capital investment so the % gain was much higher.
Oil is taking quite a hit today, it was bumping up against the lower bollinger and the seemingly unrest over oil prices among the OPEC members and Russia.
Peter Havens of Baldwin Management Picks From Royal Dutch Shell (ADR), Exxon Mobil (NYSE:XOM) or Chevron (NYSE:CVX) - The Wall Street Transcript
Peter H. Havens is the Chairman and Founder of Baldwin Management. In a recent exclusive interview with the Wall Street Transcript, he details his investment criteria for picking the best large multinational oil stock among Royal Dutch Shell (ADR),
Options vs. Stock
I was asked the advantages of trading stock vs. options.
The main advantage of buying stock for a trade (when one believes the stock price is at a bottom) vs. options is that, if the stock price increases, one usually will make more absolute $ when buying the stock.
The advantages of selling the options (naked puts and covered calls) vs trading the stock are: lower potential losses; no capital required (money comes into account rather than going out); much higher rates of return; less difficult and risky than to short the stock; one can roll the option until the stock price is favorable.
This is not to say that one is better than the other...they are just different with different risks
OT Just thinking that Buffett must believe that oil prices will remain low if not he would not have loaded up on airline stocks imho. anyone disagree with this theory?
Payday, Thanks Shell
Ray, you've been quiet the past few days. Do you think we've seen the bottom and are ready for a bounce? Always enjoy reading your posts/opinions.
Possibly, crude oil has found temporary price support (until the next inventory numbers or rig count - never sure about anything these days). Assuming that is the case, I sold June 30 52.50 puts for $0.55. So, at the end of June, I either buy RDSA for the equivalent of 51.95/share (if the stock is put to me) or I keep the equivalent of $0.55/share. The other choice that I have (assuming share price is below 52.50 near June 30), is to roll the options to a later date.
Not sure if others are trading but, if so, hope you do well (yes, holding long term for a dividend above 7% is good - which I also do - but enjoy being active by trading as well).
Should have added yesterday. Oh well.
Crude price keeps going down. I'll get more shares with my dividend. If Shell got down to $50 that would be a great price to pick up more shares.
Since you're reading this post I'll assume you have some interested in an investment in large integrated oil company as part of your portfolio holdings.
I already have a position in RDS-B and I'm looking to add at what I believe is the right time.
So ….. I did a quick and dirty comparison of four of the largest companies ….. the results are:
I see Shell hitting $60 plus a share by eoy. I also see them over the next couple of years getting their breakeven down to $35 a barrel of oil. Also the scrip will be dropped early next year. JMO
2nd Q Results
With Q2 crude oil prices averaging about $5/bbl less than Q1 prices, I do not see a higher earnings for Q2 for RDS as most analysts have predicted. So, I am a little cautious about higher share prices when the results are issues (late July). If one is going to trade the X-date, one might want to be cautious during the earnings announcement.