#jarosells oil => pays taxes => #jarobuys vale + bhp billiton + rio tinto

what's the advantage of long blog titles? there is not much to add later on :-)

folks, please don't think the oil price is gonna collapse ... i would rather hold my trade till the end of january, but i couldn't ... well, my call option (call warrant) expired yesterday, so the goldman sachs guys sold it close to the daily low @ 3.50 €uros i think (brent oil was $113 per barrel yesterday) ... it is nice to be an emitter & market maker at one time, isn't it?

anyway, my trade from late march 2009 on brent oil and strike price $90 is 2.6 times the initial amount, so i've managed to make 160% profit on that thinny position ... unfortunately, the all-time-high for that paper was 4.82 €uros (probably when the oil price was $125 in april), so there could be even more money made, but i've somehow waited for a temporary (news driven) price spike which didn't come in the last 2 years  ... my dear, don't worry, i've one more open oil option, my bigger and less aggressive paper oil which runs one more year (till 11/12/2012) and has a strike price of only $70 (currently +117%) ...

why did i buy all these 3 major commodity producers and not any pennystocks this time? well, i just thought my always underfunded account will enjoy their fat dividends ;-)

• vale (Companhia Vale do Rio Doce) ~ brasilian iron ore producer
• bhp billiton ~ british/australian iron ore, coal, oil, base metals, potash etc producer
• rio tinto ~ british/australian aluminium, copper, iron ore etc producer

as u can easily see, i've stolen (=source) that picture from my canadian oil explorer donnybrook 

my oil SPECULATION

folks, i've bought few oil call options (warrants). this low, low, low oil prices cannot last forever!!! let's benefit from return to normality i.e. increasing oil prices in the next few years :o)

trading symbol: DE000GS1T1R3 (~ GS1T1R)
underlying future: brent oil
strike: $90
date of maturity: 11/14/2011
price: €1.28

damned hell, there must be some price movement in the next 2.5 years! hopefully is goldman sachs (= emitter) not bankrupt before oil skyrockets & thus my call options makes me rich, rich, rich ;o)). sounds like an easy bet, isn't it? well, there have been also much longer running call options and therefore much more expensive ones on the market e.g. emitted by jp morgan (5 years) and societe generale (till 2016), but i think 2.5 years is enough :-))

what about oil INVESTMENTs (not speculation!) in general? well, my trading buddy valentin covered that issue recently, pls read his complete analysis (in german) in his blog ... thx, valentin :o)

• 04/02/2009 => i've bought next call option on oil today :o)