Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (14354)	3/10/1998 4:52:00 PM
From: waverider	Respond to of 95453

>If at the time it happens you have five of the Crude Oil Strips, purchased at $2,000 each for a total investmentof $10,000*, your possible net profits could be:< What the hell is a Crude Oil Strip? Diamond H

To: Lucretius who wrote (14354)	3/10/1998 4:56:00 PM
From: 007	Respond to of 95453

Fascinating post! I'd like to play this Arabian Lottery; how does one buy options on oil futures, and how far out are the expiration dates? 007

To: Lucretius who wrote (14354)	3/10/1998 4:57:00 PM
From: Swede	Read Replies (1) \| Respond to of 95453

One problem: The U.S ain't gonna let it happen. Hell, if we would go to war for Kuwait, think what we'd do to "liberate" Saudi.

To: Lucretius who wrote (14354)	3/10/1998 5:11:00 PM
From: marc chatman	Read Replies (1) \| Respond to of 95453

ROFL! Ah, untold riches ... and it sounds so eeeee-zy. Sounds like some of the radio ads running around here about leveraged futures on heating oil. Forget $75 oil; I'd be happy with $19 oil, which apparently was the price when this promotion was written. Hmmm ... I wonder how much the initial investors are down so far.

To: Lucretius who wrote (14354)	3/13/1998 11:40:00 AM
From: 007	Read Replies (1) \| Respond to of 95453

Crude Oil Strips - Update Further to the piece you posted concerning options for crude futures, I looked into it and priced them out. The latest expiration date I found was 12/00. They cost $1,000 for a strike price of $19/barrel and they control 1,000 barrels. Therefore, breakeven is at $20. Crude options this far out are extremely illiquid. It's true that if oil were to spike to $40, you could make $20k for each $1k invested. However, IMO these options are not worth the risk because the expiration date is too soon. We can be very certain that oil will spike again, and at a minimum go above $20, but betting on it occurring within the next 33 months seems unnecessarily risky to me. I agree with your assessment that the best place to be to capitalize on such eventualities is to be invested in this sector. After 33 months in this sector, we should see substantial appreciation in these stocks without nearly the level of risk inherent in these crude strips. If oil does rise over $20 in that time period, then we will do extremely well with our equities. 007 PS NE is attracting a lot of attention today. Earlier I noticed 100k on an uptick.