Comments on: One year later, a real head and shoulders? http://sovereignspeculator.com/2010/06/29/one-year-later-a-real-head-and-shoulders/ Thoughts on the markets and the decline of the west Sun, 28 Nov 2010 03:45:05 +0000 http://wordpress.org/?v=2.6 By: Graphite http://sovereignspeculator.com/2010/06/29/one-year-later-a-real-head-and-shoulders/#comment-10372 Graphite Fri, 02 Jul 2010 05:39:58 +0000 http://sovereignspeculator.com/?p=5004#comment-10372 Mike, your post helped me decide to close the short leg of a bearish CL put ladder I had on before today's $3.00 plunge. Nice call! Mike, your post helped me decide to close the short leg of a bearish CL put ladder I had on before today’s $3.00 plunge. Nice call!

]]> By: CP http://sovereignspeculator.com/2010/06/29/one-year-later-a-real-head-and-shoulders/#comment-10370 CP Wed, 30 Jun 2010 03:47:52 +0000 http://sovereignspeculator.com/?p=5004#comment-10370 Now we're talking - let's look for an energy company that isn't making it given today's CL and NG prices. It'll be sunk for sure when CL hits $35. Now we’re talking - let’s look for an energy company that isn’t making it given today’s CL and NG prices. It’ll be sunk for sure when CL hits $35.

]]> By: Graphite http://sovereignspeculator.com/2010/06/29/one-year-later-a-real-head-and-shoulders/#comment-10369 Graphite Wed, 30 Jun 2010 01:46:14 +0000 http://sovereignspeculator.com/?p=5004#comment-10369 I'd also imagine the oil sands producers would be juicy shorts ... lots of them can't even break even on their production costs without oil over $50 per barrel. I’d also imagine the oil sands producers would be juicy shorts … lots of them can’t even break even on their production costs without oil over $50 per barrel.

]]> By: Graphite http://sovereignspeculator.com/2010/06/29/one-year-later-a-real-head-and-shoulders/#comment-10368 Graphite Wed, 30 Jun 2010 01:43:02 +0000 http://sovereignspeculator.com/?p=5004#comment-10368 Crude oil has the most liquid futures options market of all the commodities, actually. Then there's options on USO. In addition to the majors I imagine there are a lot of small-to-mid-sized drillers and oil service stocks with lots of debt that could go close to 0 if oil plunges, but I don't know any specific examples. Far OTM puts on them would give you plenty of leverage to an oil price plunge though. Crude oil has the most liquid futures options market of all the commodities, actually. Then there’s options on USO.

In addition to the majors I imagine there are a lot of small-to-mid-sized drillers and oil service stocks with lots of debt that could go close to 0 if oil plunges, but I don’t know any specific examples. Far OTM puts on them would give you plenty of leverage to an oil price plunge though.

]]> By: Mike http://sovereignspeculator.com/2010/06/29/one-year-later-a-real-head-and-shoulders/#comment-10367 Mike Tue, 29 Jun 2010 21:36:36 +0000 http://sovereignspeculator.com/?p=5004#comment-10367 If leverage is what you're after, futures offer all anyone could want -- 10:1 isn't enough for you? There are also options on futures, btw. Jim Chanos said recently that he's shorting a bunch of the majors, since they're depleting their reserves much faster than they're replacing them. If leverage is what you’re after, futures offer all anyone could want — 10:1 isn’t enough for you? There are also options on futures, btw.

Jim Chanos said recently that he’s shorting a bunch of the majors, since they’re depleting their reserves much faster than they’re replacing them.

]]> By: CP http://sovereignspeculator.com/2010/06/29/one-year-later-a-real-head-and-shoulders/#comment-10366 CP Tue, 29 Jun 2010 19:22:54 +0000 http://sovereignspeculator.com/?p=5004#comment-10366 There's got to be a better way to short crude than the futures. What about finding a leveraged, high cost producer to short? There’s got to be a better way to short crude than the futures. What about finding a leveraged, high cost producer to short?

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