VBIN's oil stock thread.

[vbin]

Yeah I think so too, oil companies are future looking too if I am not wrong. Don't they write future contracts? Ex: when oil was at 0 that's what they said we have contract to sell at $40. So if oil spike and keep the uprend that's where they will try to sqeeeze as many deals as possible I am guessing.

[fenders53]

(02-17-2021, 11:57 AM)vbin Wrote: Yeah I think so too, oil companies are future looking too if I am not wrong. Don't they write future contracts? Ex: when oil was at 0 that's what they said we have contract to sell at $40. So if oil spike and keep the uprend that's where they will try to sqeeeze as many deals as possible I am guessing.

I got in just before you on my last.  I was thinking about this just a few days ago.  They must be locking in a few deals to avoid a repeat of 2020.  Better to commit to some amount of future $45-50 contracts than deal with that again.  They'll play the oil casino some but the smart ones won't get burned so bad next time.

[vbin]

Goldman says crude going $75 by q3. I say they are being conservative. https://seekingalpha.com/news/3664192-go...nd-rebound

May be time to buy more xle or oxy calls. Lol

[fenders53]

(02-22-2021, 12:46 AM)vbin Wrote: Goldman says crude going $75 by q3. I say they are being conservative. https://seekingalpha.com/news/3664192-go...nd-rebound

May be time to buy more xle or oxy calls. Lol

You posted SA oil bull hype.  That always gets me in trouble Haha.  Oil probably hangs out here awhile but maybe your dreams come true by summer. Yes buy lots of oil calls.  That always works.

[vbin]

I closed my XLE calls. Still have the stocks. XOM seems to be hitting resistance at these levels. I hope not. It's very close to my purchase levels.

Given the market thinking to sell calls in xom.

[fenders53]

(02-23-2021, 07:52 PM)vbin Wrote: I closed my XLE calls. Still have the stocks. XOM seems to be hitting resistance at these levels. I hope not. It's very close to my purchase levels.

Given the market thinking to sell calls in xom.

I hate to advise that but I probably would.  Nothing says you have to go all in on all your shares.  When I have  a lot of shares sometimes I sell a call.  Wait a few weeks and sell another, hopefully at a highers strike and further out date.  WELL crashed hard on me due to Covid.  I waited months for  partial rebound then walked calls up from 55 to 70 so far.  It took four months at least.  It doesn't always go that smooth of course.  XOM isn't going to crash IMO so I wouldn't force a trade unless premium makes sense.

[EricL]

New 52-week highs for EOG and XOM, and I'm now in the green on my XOM position.

WTI Crude up another couple % and pushing $63.

The next couple storage reports should be interesting considering refinery and production shutdowns from the arctic outbreak last week.

[fenders53]

(02-24-2021, 10:30 AM)EricL Wrote: New 52-week highs for EOG and XOM, and I'm now in the green on my XOM position.

WTI Crude up another couple % and pushing $63.

The next couple storage reports should be interesting considering refinery and production shutdowns from the arctic outbreak last week.

That is great news Eric.  It's been a tough slog.  You should see a little profit in the next six months I would think.  I enjoy debating energy with you guys and am concerned you might think I rejoice when you guys hit a rough patch.  I'm just trying to keep VBIN from hocking his car title for a payday loan so he can buy OXY calls.   

[vbin]

(02-24-2021, 11:31 AM)fenders53 Wrote:

(02-24-2021, 10:30 AM)EricL Wrote: New 52-week highs for EOG and XOM, and I'm now in the green on my XOM position.

WTI Crude up another couple % and pushing $63.

The next couple storage reports should be interesting considering refinery and production shutdowns from the arctic outbreak last week.

That is great news Eric.  It's been a tough slog.  You should see a little profit in the next six months I would think.  I enjoy debating energy with you guys and am concerned you might think I rejoice when you guys hit a rough patch.  I'm just trying to keep VBIN from hocking his car title for a payday loan so he can buy OXY calls.   

ROTFL. I am close to getting green on xom too( not considering the huge diva I got paid while holding, lol). I did sell covered call out 2 weeks in xom and oxy today lol.

I hope so too Eric, JPM put out an report where they saw largest buying days in energy sector in last 2 years. They expect more funds(trend catchers) to start buying too( may be already happening). I think the narrative soon can change on street for energy or profit taking can happen. Either way I will start taking profits starting with xle if it goes $55 lol

[fenders53]

Just go gradual with your moves. That is almost always good advice. The list of things that can throw a curve at ANY commodity is almost endless. Oil is among the worst for predictability IMO. I sell a lot of covered calls. I'm usually sorry if I go all in on any narrative and commit it all on that day. Short duration calls are usually best when you are unsure. You can usually dance out of them and squeeze your forced sale a little higher and collect at least a little more premium selling time. I did some of that today.

[vbin]

(02-24-2021, 03:04 PM)fenders53 Wrote: Just go gradual with your moves. That is almost always good advice. The list of things that can throw a curve at ANY commodity is almost endless. Oil is among the worst for predictability IMO. I sell a lot of covered calls. I'm usually sorry if I go all in on any narrative and commit it all on that day. Short duration calls are usually best when you are unsure. You can usually dance out of them and squeeze your forced sale a little higher and collect at least a little more premium selling time. I did some of that today.

Yeah, I have same thoughts. I would still have a lot of oil. At the moment I have sold covered calls on 1/3rd to 1/4th of my remaining oil positions.

[fenders53]

That sounds like a good plan since you've held it so long. Oil seems like its a little ahead of demand but a lot of states are fully re-opening a little faster than thought just a few months ago. I find it much easier to time put sales than calls. I guess that's the nature of a bull market. I keep doing it though. Quite a few of my higher Div stocks have been stuck in a 10% range. It makes a big difference in return if you can pull in a couple premiums in between dividends. If XOM creeps up through the summer it might be a better time to get more aggressive with calls. I am doing that with T and PFE now because I want to dump shares.