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).
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:
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.
Just my view...
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
According to some energy advisors (SKopits. Princeton Energy Adv.) oil prices are beginning to weight on drilling activity. Oil rigs added last 2 weeks going lower. Mainly horizontal. Seems 45 $/bbl wti appears to be the pain point for us shale. My view: if true and 45 wti is aprox. 48$ for brent rds free cash is positive and good. See last q results. If so or near we longs are safe. I do not expect huge capital appreciation but safe very good divi. glta
Why would anyone with any brains read and/or believe what Market Realist writes? IMO they're input is total B.S.?
To follow up on the trade initiated last week, it appears as if RDS will close above 53 today. So, the puts that I sold for $0.35 will expire worthless and I will keep the premium. Yes, a small gain only but a short time trade (1.5 weeks)...
RDS-A appears to suggest upside opportunity. Yo you should really check out awesome_stock.s, they seem on point with their stocks.
RD swing exit target at $56.18. My opinion only.
It look like RD had bottom out after hitting the lower band.
A few weeks ago, someone wrote on this board wrote that trading was not profitable and that it was best to hold long term for the dividends (and stock price appreciation, if any - my words).
While holding long term for +/- 7% return is a good investment (disclosure...I hold shares long term for the dividend), others on this board have done very well by trading this stock.
As an example, in my last trade I purchased shares at 53 and sold (via covered calls) at 55.45. So, I gave up a dividend of $0.94 for a gain of $2.05 (if I were to repurchase the shares today at $55.40). So, in this case, trading provided more than a double return.
As an aside, the stock price is near the lower BB and I am considering purchasing shares and/or selling calls.
Disclosure...I sold 30 June 16 (53 strike price) put contracts (equivalent to 3000 shares) near the close yesterday. So, in a week, I will either have 3000 shares put to me at the equivalent cost of 52.65 or will keep the premium.
Yes, just a small toe in the water...and the price may go lower - in which case I will buy trading shares or sell more puts.
Trump Climate Change
Well JPM give about $67 for RDS.A share target.....we are still cheap.....better yield than most of them !! accumulation is going on !!!
Royal Dutch Shell plc share price, upcoming events, media releases, quarterly results, annual reports, presentations and financial statements.
It looks like RD is ready for a 5 day mini bounce swing to $56. It will be very tight swing on energy stock as they hit lower band. Just my thinking.
The price of crude support at $40.00 (far away yet). I am waiting for the the price of crude to go sideways to make sure it stop going down. RD may have more down side because of crude price have not found bottom yet. I think the nest support for RD is $48.00. But I will wait till MACD turns up.
For those wanting a summary of RDS' performance and comparisons with xom, cvx and bp, the following 11 part summary may be of interest.
oil still downtrending now hitting 3 week lows. $XOM, $RDSA, $CHV are still making money but would like $56 and higher crude.
the group is not going to rally when more US barrels come on the market. staying long Dutch and working a bid below the market.
smart money and hedge funds getting long majors, frackers and crackers into price weakness.
10 years out, oil and gas industry will look different than today. I would guess more consolidation and bankruptcies of marginal companies. LNG, hydrogen, ICE cars, plastics and aircraft fuel should underpin oil segment.
I do not currently see much direction in stock price nor a reason for it to make a move in either direction. Currently near upper trading range but do not feel a short (or selling covered calls) is appropriate. So, currently no trading opportunity for me. Holding long term positions for approx. 7% annual return...