|Bid||0.00 x 2900|
|Ask||0.00 x 1200|
|Day's Range||29.92 - 31.57|
|52 Week Range||14.51 - 92.51|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||1.47%|
Leveraged exchange-traded oil funds are having an exceptional year on the back of rising oil prices, but these risky investments could be a big upset if and when oil trends downward.
WALNUT CREEK, Calif. , March 14, 2019 /PRNewswire/ -- USCF today announced the availability of options trading on the United States 3x Oil Fund (NYSE Arca: USOU) and the United States 3x Short Oil Fund ...
Many investors have turned bullish on oil and are seeking to tap this opportunity. For them, a leveraged play on the commodity could be an excellent idea.
One of the most frustrating things about the mainstream financial media is the steadfast, seemingly never ending refusal to learn how derivative markets work. Commentators yammer on about the "volatility index" or "the fear gauge," the VIX, without understanding the difference between implied volatility of options contracts and the actual volatility -- or amplitude if you will -- of the underlying securities.
After some back-and-forth with TheStreet founder Jim Cramer about his "oil is crashing, it's going to $40/barrel call" in early-November, I can't describe Tuesday's 8% plunge as anything but a crash. The Federal Reserve's Federal Open Market Committee will conclude its two-day meeting Wednesday and issue a statement at 2 p.m. So as the oil pits are closing Wednesday Fed Chair Jerome Powell will be in the middle of his all-important post-statement press conference. Very few oil futures contracts (I believe the number is much lower than 10%) live to see physical settlement at the Cushing, Okla., hub, so don't be confused.
Amid the renewed optimism, many investors have turned bullish on the energy sector and are seeking to tap this opportunity. For them, a leveraged play on energy or oil could be an excellent idea.
Although commodities might lack the luster and hype of the stock and bond markets, they nonetheless performed impressively throughout most of 2018. Indeed, ETF.com reports that strong performance in energy names led commodities to their highest level since 2014, as of earlier this fall. With a rally going on for more than two years, commodities quietly rose to strong levels of performance.
Thus far in 2018, adding higher oil prices to leveraged exchange-traded products (ETPs) has created a combination of combustible profits for traders. As such, leveraged oil plays have had bullish traders gushing as oil prices continued their ascent on the latest supply data from the U.S. Energy Department.
Indications that oil supply could be tightening have continued to send oil prices on their upward trajectory, which have benefitted leveraged exchanged-traded products tied to the commodity's price. Currently, the price of WTI Crude stands at $72 and Brent Crude at just under $82, but the idea of $100 oil prices have already entered into the realm of possibilities by the end of this year. Earlier this week, U.S. President Donald Trump prodded the Organization of the Petroleum Exporting Countries (OPEC) to ramp up production levels in order to temper oil prices ahead of mid-term Congressional elections.
A leveraged play on energy or oil could be an excellent idea as these could see huge gains in a very short time frame when compared to the simple products.