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Freefall

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Thread replies: 29
Thread images: 2

It's coming. .99 per gallon gas is coming.

So when shit hits the fan here and bottoms out, is there a way for my business to pre-buy a shit load of gas to lock in the price at local gas stations? My company goes through about 6000 gallons a month. I'd probably buy like $50,000 in gas.
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>>997996
>So when shit hits the fan here and bottoms out, is there a way for my business to pre-buy a shit load of gas to lock in the price at local gas stations?
Sort of. You could go with options.
http://www.investopedia.com/university/options/?header_alt=a
Idk if there are gas options but there definitely is for oil.
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>>997996
Look around for a large super-jobber in your area of operations and ask for a pre-pay deal.

Only do it with the big guys though.
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Yes, it's called "future contract".
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>>998039
Thats an 'option'
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>70 tick drop and autists are screaming

Nigger I've seen 3 point moves in 1 hour.
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>>998039

OP, do not buy gasoline futures. A contract is for 42k gallons. If you only consume 6k gal a month, you will be over hedged and take a huge loss if prices fall.

Futures work well for companies that take ohysical delivery of bulk product. If you were getting tanker loads of gasoline delivered to your shop, it would be a great idea.

There are services out there that pool futures contracts, but honestly with as little as you consume, the premiums you'll pay won't be worth it.
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>>998054
It's a new low brother, nobody's screaming.
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>>997996
i'm not entirely sure how this works if OP buys 50000 gallons, but, does he have to take delivery all at once? and, if so, does he realize gasoline loses potency after a certain amount of time?
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>>998046

No, it's a "futures contract" and it's very different from an option.

An option gives the holder the right, BUT NOT THE OBLIGATION, to buy or sell an equity at a fixed price on or before a certain date.

A futures contract OBLIGATES the buyer to make or take delivery of a commodity at a fixed price on or before a certain date.

If you buy an option and hold it to expiration, worst that happens is you lose money if it expires out of the money.

If you buy a futures contract and hold until expiration, you may be obligated to take delivery of 42,000 gallons of gasoline.
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File: BTRG9r9.png (30KB, 1199x705px) Image search: [Google]
BTRG9r9.png
30KB, 1199x705px
Muh oil crash
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>>997996
There is another recession round the corner, we NEEEEEEEED this cheap oil more, which his why the Saudis cannot bust our operations!
Its over for those camel jockeys..
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>>998306
Nice demo account m8
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>>998312

It goes deeper than that and another recession is a few years away, definitely after the presidential election.
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>>998318
The are certainly trying to tread water till US elections and and EU referendum. I'm a futures trader by profession, and Economics is really just the politics of money, now more than ever.
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>>998306
Bull trap
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>>998306

lol, this is the kind of chart autists make to sell bs info to more autists on instagram or twitter. Sweet perfect entries and exits bro.
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>>998314
Yeah it is demo. Still learning.

>>998411
Shorts covering for the holidays maybe.

>>998437
I see those all the time from FX trader. They have webinars showing chart examples of a setup when there was 3 losers of the setup on the chart they are showing. Just ignores it.
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>>997996
>commodities cheaper to buy
>all stocks, even ones that use said commodity to make shit, go down
you can't explain that
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>>998447

Companies like Nike and UA should be making insane highs. They've literally cut production costs by more than 70% over the last few years, give or take a bit.

And the irony? The price of their products continues to rise. Inflation? lol...these corporations are laughing all the way to the bank -right now-.
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>>998460

Edit: I don't watch consumer stocks but NKE is at record highs, UA has backed off by about 20% from all-time recent highs. UA has a stretched PE of 85 and NKE has a PE of 32. NKE is obviously the less risky of two.
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>>998306
>faggot can't follow his own strategy by closing at his target price
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>>998447
>demand for end products goes down, creating less demand for oil
fuck you're retarded
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If oil is actually that cheap why is everyone trying to own the pipelines in Syria?
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>>998839

Yeah, and if global warming is real, why should I buy a coat for the winter?
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>>998839
Nat gas. Europe gets all their gas from the Ruskies. The Euros wanted to run a pipeline fom Qatar and Russia's putin them back in their place. I believe this is the case, correct me if I'm wrong
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>>998124
You could buy an in the money futures option. I don't know the ratio but I believe they're 1/10th the size of a full contract.
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>>998124
This you buy certain commodities in the future at today prices. This is where you make a killing if you work in supply chain for big companies.
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>>997996

You can buy crude future options or simply crude futures but the contracts can be pretty large so the hedge might not be worth it for a business like yours.

You could hedge with equities? Much more liquidity - buy E&P and Oil Service company futures.

A word of warning though, my view is that we will see increasing crude prices from now until 2020 so unless you have the tools to conduct careful analysis and news flow tracking I wouldn't speculate on oil.
Thread posts: 29
Thread images: 2


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