Something weird is going on with my oil ETF trades.

Discussion in 'Stock Market' started by MarathonMike, Jun 14, 2019.

  1. MarathonMike
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    MarathonMike Platinum Member

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    For the last few months I've been experimenting with trades of OILD and OILU pro share ETFs. These particular ETFs amplify the Crude oil price move by times 3. So here's the thing, I've made a few trades of both OILD and OILU and I should have a net loss of about 100 bucks but when I check my realized gain/loss in my account ALL trades show a net profit of zero! WTH? Does anyone trade these ETFs or can explain this?
     
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  2. Cellblock2429
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    Cellblock2429 Gold Member Gold Supporting Member Supporting Member

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    /——/ I bought 1,000 shares of 3x ETF, GUSH due to the Middle East problems and the summer driving season. It fell to 5.25, even after the Iran bombing of the tankers. Go figure.
     
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  3. william the wie
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    william the wie Gold Member

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    Don't know about ETFs but SJT is a monthly dividend stock that has a good dividend growthrate over the past five years so why bother with issues you don't understand? Charles Carson keeps track of a lot of DIPs and you have made money in that market in the past. Why not stick with what you really do understand better than the average investor? As for myself I have a watch list of good dividend stocks that are optionable so I can get paid twice when getting out. Buying before X div and writing a call is something I understand and I increasingly stick to. Have a simple plan you can execute like Cell Block's covered put schtick. That is much safer than following the herd.
     
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    Last edited: Jun 14, 2019
  4. MarathonMike
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    MarathonMike Platinum Member

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    I'm experimenting with oil ETFs because I want to understand them. I do very well trading stocks but I like to learn new things, too. Thanks for the tip on SJT I'll look into that one.
     
  5. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    If an ETF uses futures to create their positions, the trading spreads and commissions cause erosion in value.

    The Dangers of Long-Term Investing with ETFs
     
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  6. Cellblock2429
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    Cellblock2429 Gold Member Gold Supporting Member Supporting Member

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    /——/ Think of ETFs as mutual funds that can be traded throughout the trading session. Some have options and even pay dividends. There are leveraged ones that move up and down 2 to 3 times the market
    Exploring How Exchange-Traded Fund – ETFs Work
     
  7. MarathonMike
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    MarathonMike Platinum Member

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    Good info all, but my original question remains. Why would multiple trades of OILD and OILU ETFS that resulted in varying losses and gains ALL show a net result of zero profit? I think my brokerage account gain/loss report is messed up. I'll contact support and get it straightened out, just curious i anyone has seen that before.
     
  8. Cellblock2429
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    Cellblock2429 Gold Member Gold Supporting Member Supporting Member

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    /——/ Always keep a separate journal of trades and factor in commissions
     
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  9. Picaro
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    Picaro Gold Member

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    Probably because a lot of older futures contracts just became worthless, due to oil prices expected to spike up because of the tanker attacks and nobody wants them now, they want newer ones based on higher ranges of prices.

    And even if oil prices stay the same, the shipping rates don't, they rise pretty high in war zones, and so do pipeline rates, so even if you have a contract at a lower price than the spot market prices spike, exercising options and getting delivery can result in a big loss. ETF's may be like mutual funds, but all stocks in commodities markets are dependent on futures markets and what the numbers of puts and calls are at any given day.
     
    Last edited: Jun 16, 2019

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