• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 4 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 2 hours Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours U.S. Withdraws From U.N. Human Rights Council
  • 13 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 13 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 9 hours "The Gasoline Car Is a Car With a Future"
  • 7 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 5 hours Saudi Arabia turns to solar
  • 21 mins Gazprom Exports to EU Hit Record
  • 17 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 3 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 6 hours What If Canada Had Wind and Not Oilsands?
  • 9 hours EVs Could Help Coal Demand
  • 17 hours WE Solutions plans to print cars
  • 22 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 1 day Lloyd's of London excludes coal
Alt Text

China Plans To Create A $78 Billion Natural Gas Giant

Chinese regulators are looking to…

Alt Text

U.S.-China Trade War Will Hurt Shale Drillers

The latest escalation in the…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Hedging A Short Crude Position: 2 Stocks To Consider

Hedging is a concept too often misunderstood, or worse, badly executed. To many investors and traders, a hedge simply consists of a trade that directly opposes their main position. They may be long a portfolio of stocks, and then buy puts on an index, for example. To my mind this isn’t hedging, it’s just effectively cutting your position size. You could achieve the same thing by just selling some of your stocks. A good hedge is one that gives some degree of protection against an adverse move in your position, but still has a chance of appreciation if things go as you expect.

These thoughts came to mind as I considered the substance of what I wrote here last week. I didn’t want my first piece for Oilprice.com to be a negative, but it would have been dishonest to write anything without first giving my view that crude was more likely to trade down in the coming month or so. With that overall view in mind, I set about finding a few positives to write about, that could be used as an effective hedge should you trade that view and short crude, either through futures or options.

In last week’s piece I mentioned that I liked Cobalt International Energy (CIE) and that is the kind of thing I am talking about. The only problem with that, however, is that I first wrote about that stock on January 28th, and it has gone up by about 25% in the last couple of weeks. That’s great news for anybody who bought it then, but it doesn’t look like such…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News