Oil Slump Hits Listed Firms' Profits

[Ludacris]

http://www.bangkokpost.com/business/finance/491020/oil-slump-hits-listed-firms-profits

Going to be an interesting year for the SET.

2014 profits down 11% with Q4 profits down 58% but the SET index is still close to record highs.

[DogNo1]

Crash coming? It may be time to buy puts.

[fletchsmile]

Crash coming? It may be time to buy puts.

funded by selling calls

Cheers

Fletch

[DogNo1]

Thanks Fletch. Yeah, I always try to do spreads. I suppose bear put spreads would also be a possibility by buying the higher strike ad selling the lower strike. I wish I'd protect my oil-related CEFs and MLPs that way.

[fletchsmile]

For SET50 that's pretty much how I'm positioned at the moment:

Short calls @ 1125 for both March and June series - no way SET was going to get there - and have enjoyed nice profits from there given we're now around 1015

Long puts @ 975 for both March and June series. (I took profits on my long 1025/1000 puts);

Then:

March: Short puts @950 but covered by long cheap puts @ 925 just in case

June: Long puts @ 950 short puts @ 925

Few more trades in there eg recently bought calls @1050 for March as they're so cheap, funded by selling calls @1075, probably both will expire, but a v. small chance of exceeding 1050 before month end, whereas next to none for 1075 - couldn't even hold close to that earlier in the year when more people were positive.

You're a much braver man than me if you play oil futures. I've looked into oil futures on TFEX, but I'm not comfortable with oil futures generally. Would have liked oil options on TFEX, but they don't do.

I prefer not to play with the professionals on developed exchanges for those type of things

Cheers

Fletch

[DogNo1]

Hi Fletch,

My problem is that I have sizable positions in BTE, ERF, JE, PER and PGH. I bought them for diversification and their dividends several years ago on the advice of my income securities adviser. They have now lost an average of 60% of their value. When they were 30% down, the adviser said to hold them and now won't discuss why he recommended them for a portfolio that was supposed to be low-risk and recommended them again when they were 30% down. He just mutters something about diversification being necessary. So much for paying for advice . I didn't buy puts on them when I should have. I don't think I can lose much more on them and their prices seem to be jumping around so I'm still holding them. I'm thinking of taking out bear put spreads on them. The full-storage scenario in the US has me worried though.