• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 5 hours WTI @ 67.50, charts show $62.50 next
  • 3 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 4 hours Mike Shellman's musings on "Cartoon of the Week"
  • 9 hours Venezuela set to raise gasoline prices to international levels.
  • 14 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 1 min Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 3 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 9 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 15 hours Corporations Are Buying More Renewables Than Ever
  • 4 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 20 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 5 hours France Will Close All Coal Fired Power Stations By 2021
Alt Text

Falling Rig Count Supports Oil Prices

Oil prices found some support…

Alt Text

U.S. Drillers Add Double Digit Oil, Gas Rigs

Despite the correction in oil…

Alt Text

The Newest Digital Trend In Oil & Gas

The AI market in oil…

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