I am adding a small position of ProShares Ultra DJ-AIG Crude Oil (UCO) to my portfolio, as insurance against any potential conflicts with Iran. While I don’t foresee the U.S. initiating action there, I can very easily see Israel doing it. Also, the noise out of that part of the world is growing a bit louder.
My guess is nothing will happen and I will end up selling UCO at a loss. On the other hand, if I am wrong, the markets could turn very ugly.
I bought UCO at $47.65.
I swore if UPL or DVN got back into the green I would sell. Will DVN has been a green number for the last couple of days but have decided to hold a little longer just in case something goes crazy in the Middle East. Even thought both these companies are much more natural gas than oil I have to believe any issue in the Middle East will raise oil big time and natural gas will go up at a smaller rate. I also raised my limit sell price for TOT (bought for the dividend) which I over bought in the market down turn last year. All my other oil stocks I have no short term interest in selling.
Unfortunately I stepped away from my computer last Friday thinking I would be back before the market closed. Had a limit price on SCO which it didn’t hit, got home later than expected, the market was closed, oil goes up on Monday (market closed), and to compound my error I didn’t sell at a small lose when the market opened on Tuesday. Yes, as a result of not wanting to take a small lose I am still holding SCO which is now over 8% down!
Been there, lost that…
Tom, In the same spot. I do not think oil stays here. Key word think. But if it does at least we will get a new guy in the whitehouse.