I\’ve Asked This Before

But any of you readers know how I could go about purchasing a put option on the price of crude oil?

1) Needs to be an option, not a future. Hey, I\’m a private investor.

2) Reasonably long term: 12 months or more if possible.

3) Well out of the money….like $70 a barrel stuff.

OK, so I\’m pretty certain that the financial markets are sophisticated enough to be able to deal with all of the above. However, I have a feeling that they might only be for "professional" investors, ie, dealing in sums far larger than the £1k-£1,500 I might be willing to lay out on such a bet.

So, anyone actually know?

10 thoughts on “I\’ve Asked This Before”

  1. Spread betting? Mind you, the forward bets on IG Index only go to July 08.

    Alternatively, you could short an ETF (e.g. OILW).

  2. For some reason I missed your bit about options not futures. But I’d still look into that.

    Tim adds: I was just about to add that to the last comment, having looked at it. Want a fire and forget, not one that leaves me open to margin calls.

  3. I’d look at the short ETF. There aren’t margin calls – you’ll just find one day that you have no investment.

  4. You could try Spreadfair or even Betfair – either of them should be able to supply *someone* to act as counterparty

  5. Hillary Clinton would know: she learned all about how to do this from reading the WSJ.

    Call her … I hear she’s sweet and approachable.

  6. Pingback: Investing with Timmy

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