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Hey guys,

 

Wanted to come on here and let you in on a few things I have been doing in hopes of being able to help out some gents. I got a bunch of PMs regarding the market so I feel like there are some traders in here worth chatting with!

 

If anyone has input on others oil stocks, please share!

 

I have been looking at oil companies as of late since they have been taking a beating. Here are my three favorites and how I plan on playing this great opportunity...

 

1. NBR -66% since summer

2. RIG -64.5% since summer

3. WTI -72% since beginning of summer

 

These three have dropped a substantial amount and even more so, have all started to skyrocket as investors are trying to play/pick this past week as the bottom...

 

1. NBR +35% last 5 days

2. RIG +20% last 5 days

3. WTI +35% last 5 days

 

I will now begin to start buying some Call options for Feb/Mar/Apr/May. Obviously slowly entering into my position, every few days for the next couple of weeks. If the stocks start to drop again, I will hold until it starts to look good, than start buying more options.

 

Now this may not be the bottom, but when a substantial amount of money starts entering into the sector, a lot of investors tend to start pouring in. This is why its best to taper in over the course of a few weeks, be it shares or options.

 

Happy Trading!

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I "opened" a simulator account on Investopedia.com. It gives you $100,000 fake money to play with. Been buying some Oil stocks and calls just to see what happens.

 

Also have a small interest as a private investor with an oil company which I hope will pay off in time. Not really sure what these prices are doing to them now though.

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What is your reasoning for the bottom in oil? I have a lot of friends that are oil traders, and for weeks they have been telling me that oil is at the bottom, and then it drops more. I do not usually trade oil, in the past when I have taken positions in oil its usually in the ETF: (USO). I know eventually oil will go back up, however I do not see that happening until oil production is cut.

 

 

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  • 4 weeks later...
I just bought UCO and RIG. Oil is not going to stay at $45/barrel.

 

Curious if you have a reason for picking UCO over USO?

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