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AscensionMan98
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I posted another thread of this on off topic, didn't get that many views. This thread will be a lot more condesned
Oil- Embargo Being discussed. Due to sanctions , america and europe are trying their best to not buy russian oil but they supply a fair amount of oil in the world, I believe 10-15% of oil globally , and 40% of natural gas in europe.
Wheat, Nickel,Palladium also one could benefit from a long position. Unfortunately option premiums have gone up a lot,so not as high a roi but still good for a normal non option play.
One could do options on the UCO, or UGA etfs, but premiums have pumped due to volatility. A in the money option or not to far otm option could work. Very far possibly.
BOIL= X2 leveraged natural gas etf for america. If Europe is stupid enough to do a russian gas embargo, their European gas contract ( TTF ticker ) is trading at the BOE ( barrel of oil equivalent ) of 400$, and that's today. Might hit 1000$ for all we know. At a certain point the eurocucks might just import american natural gas in bulk to save money like they did in December 2021. This would make american gas skyrocket.
Copper is another good play. Their options for this and the premiums are not too bad. It broke its previous all time high so it has a lot to rally.
The most interesting plays are going to be Silver and Gold. If your super low inhibition you could do a option chain on a leveraged ( x2 ) etf which means it does twice what the underlying asset, silver or gold does , in a day.
SLV, GLD are the normal non leveraged tickers for silver and gold
AGQ, and UGL are x2 silver, and x2 gold etf tickers.
Options are still not to expensive for them
Bonus: Option short on the stock market
If we look at the 1970s, 1990 especially ( oil did 160% in 60 days, and then nasdaq 100 and Russel 200 index crashed 35-40% in that time frame ), 2000-2001 ( stock market started to slowly crash after oil did 200%+ rally in similar time frame, 2007-2008 where oil was trading at close to 200$ in todays money oil , we see that high oil prices are not good, and rapid oil pumps can cause a stock market to slowly crash or rapidly crash depending on the speed.
Unlike the 70s, we have much more high leveraged stock hedge funds. In the 70s thus the crash was slower despite the rapid oil melt up. The 1990 crash was fairly quick around 3 months, the same time frame oil exploded higher nearly x2.5 in 3 months.
A option play 20-30% otm in response to high inflation wreacking havoc on companies as they can't profit if the cost of goods which is important for production goes up, and worker demands more wage, which reduces margin
TL
R- Many good trades are their to profit from commodity bull market. Oil melt ups have caused either slow market crashes, or in some cases rapid collapse. Play with money you can afford to lose, and to be honest you already will be paying more in the gas pump, for electric bills, for food, so your fucked regardless. The point is unlike other times, their is a lot less to lose.
Oil- Embargo Being discussed. Due to sanctions , america and europe are trying their best to not buy russian oil but they supply a fair amount of oil in the world, I believe 10-15% of oil globally , and 40% of natural gas in europe.
Wheat, Nickel,Palladium also one could benefit from a long position. Unfortunately option premiums have gone up a lot,so not as high a roi but still good for a normal non option play.
One could do options on the UCO, or UGA etfs, but premiums have pumped due to volatility. A in the money option or not to far otm option could work. Very far possibly.
BOIL= X2 leveraged natural gas etf for america. If Europe is stupid enough to do a russian gas embargo, their European gas contract ( TTF ticker ) is trading at the BOE ( barrel of oil equivalent ) of 400$, and that's today. Might hit 1000$ for all we know. At a certain point the eurocucks might just import american natural gas in bulk to save money like they did in December 2021. This would make american gas skyrocket.
Copper is another good play. Their options for this and the premiums are not too bad. It broke its previous all time high so it has a lot to rally.
The most interesting plays are going to be Silver and Gold. If your super low inhibition you could do a option chain on a leveraged ( x2 ) etf which means it does twice what the underlying asset, silver or gold does , in a day.
SLV, GLD are the normal non leveraged tickers for silver and gold
AGQ, and UGL are x2 silver, and x2 gold etf tickers.
Options are still not to expensive for them
Bonus: Option short on the stock market
If we look at the 1970s, 1990 especially ( oil did 160% in 60 days, and then nasdaq 100 and Russel 200 index crashed 35-40% in that time frame ), 2000-2001 ( stock market started to slowly crash after oil did 200%+ rally in similar time frame, 2007-2008 where oil was trading at close to 200$ in todays money oil , we see that high oil prices are not good, and rapid oil pumps can cause a stock market to slowly crash or rapidly crash depending on the speed.
Unlike the 70s, we have much more high leveraged stock hedge funds. In the 70s thus the crash was slower despite the rapid oil melt up. The 1990 crash was fairly quick around 3 months, the same time frame oil exploded higher nearly x2.5 in 3 months.
A option play 20-30% otm in response to high inflation wreacking havoc on companies as they can't profit if the cost of goods which is important for production goes up, and worker demands more wage, which reduces margin
TL
R- Many good trades are their to profit from commodity bull market. Oil melt ups have caused either slow market crashes, or in some cases rapid collapse. Play with money you can afford to lose, and to be honest you already will be paying more in the gas pump, for electric bills, for food, so your fucked regardless. The point is unlike other times, their is a lot less to lose.
