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Options Are a Good Way to Play Oil
With oil prices so erratic, selling out-of-the-money calls can be a smart move.
 
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Posted 9:55 AM EST October 22, 2007
Posted by: DKP50
Good Article JS...I've Owne ICENX MF for yrs and Some Top stocks in it and have recently been playing The Options game too for some spending $..although the Taxes are driving my CPA nuts! LOL He's just jealous...$100 Barrel? Me thinks so , in the not to distant future.. ANd Buying Gas Futures has worked out well too... so far? has paid for my next yrs total gas bills at $3.25 gallon...
Posted 2:02 PM EST October 18, 2007
Posted by: option_time
If you sell calls (covered calls)on the stocks you own, you make a guaranteed rate of return. Then, if you love that particular stock so much, you just buy it back.
furthermore, if you're certain about the price movement of the stock, you can simply buy calls and go from there. There's no law against owning the stock AND options on that stock.
Posted 6:52 PM EST October 05, 2007
SamLasley31 SmartMoney Insiders
48 Comments
I have consistently refused to sell oil stocks for years, and my returns are fantastic. Thanks, but I'll hold my stocks and watch the dollar go down and oil stocks go up again.
Posted 9:39 AM EST October 05, 2007
Posted by: swilling
What about buying puts on the oil stocks you own, and selling them at a profit when oil drops?
Posted 10:00 AM EST October 03, 2007
Posted by: FOGNO
Watch out for annualized rates of return. I did an options trade last week with a 7600% rate, but that was only for half a day. Today I show a slight loss. Return not computed.
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