Wow. Can't believe oil is down $5. The market does not believe the same things I believe apparently? Another 10-11 barrels lost today, but apparently, it just doesn't matter!
Hi, I’m all aboard with the oil thesis and I was looking around for different ways to play it other than BNO calls.
I noticed XLE calls appear to be very cheap. For Jan ‘27 expiry with a strike of $65 (similar move for $XLE as $60 for BNO), you can get them for $2.20.
I get that BNO benefits from the roll yield and that current circumstances could cause a price spike in Crude which doesn’t translate to a price spike for the producers.. but given XLE calls seem to me to be priced quite a bit cheaper than BNO calls, I was wondering what your opinion on adding those to the shopping basket would be?
Wow. Can't believe oil is down $5. The market does not believe the same things I believe apparently? Another 10-11 barrels lost today, but apparently, it just doesn't matter!
Hi, I’m all aboard with the oil thesis and I was looking around for different ways to play it other than BNO calls.
I noticed XLE calls appear to be very cheap. For Jan ‘27 expiry with a strike of $65 (similar move for $XLE as $60 for BNO), you can get them for $2.20.
I get that BNO benefits from the roll yield and that current circumstances could cause a price spike in Crude which doesn’t translate to a price spike for the producers.. but given XLE calls seem to me to be priced quite a bit cheaper than BNO calls, I was wondering what your opinion on adding those to the shopping basket would be?
Difficult to assume producers will start rallying before oil does. BNO benefits from backwardation, so there’s a compounding effect here.