Well I have been looking at some ways to hedge against the price of oil reversing due to dollar strength and demand issues came up with a few names.
Direxion Daily Energy Bear 3X Shares (ERY)
This one is a 300% short on the Russell 1000 Energy Index. It seems pretty volatile (it has dropped from $80 to $11.71) but it acts as a short on the entire oil and gas industry.
UltraShort DJ-AIG Crude Oil ProShares (SCO)
This one is a 200% short on the Dow Jones AIG Crude Oil Sub-Index. This is more of a bet against oil as a commodity. So if we see oil slide from $80 to the $60s on weakening demand this will be the stock to capture that move.
UltraShort Oil & Gas ProShares (DUG)
This one is a 200% short on the Dow Jones U.S. Oil & Gas index. This is more of a bet against how badly Schlumberger blew their numbers. There will be a recovery in this space but it might have gotten pushed back into late 2010. The flat natural gas demand also hurts these companies as well.
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