Your Questions About How To Invest In Oil

Steven asks…

how do I invest in oil stocks on ameritrade?

I just opened an account.
I want to purchase crude oil stocks that might be affected by the turmoil going on in the middle east right now.
what is the symbol, company, stock name that I should be looking for?
thank you

John answers:

If you want to buy individual stocks, use TD’s stock screener to find the symbols for crude oil producers. If you want a fund that includes only such companies, consider an ETF (Exchange Traded Fund), which is a security that tracks an index, a commodity or a basket of assets. Look for one that specializes in crude oil producers.

Sandy asks…

i want to invest in oil today whats the best way should i buy options?

how about an option till july or should i just pick a few oil stocks

John answers:

Oil companies, refiners, and drillers don’t necessarily track the price of oil. USO is an oil ETF that does a better job (it’s at $28.60± right now). July 30 calls (UBOGD) are 3.30 bid 3.40 ask. If you think USO will go to $35 by July 17 (expiration date), which is comparable to ~$55 oil, then you could make $480 on 3 call options (cost $1020), or $640 on 100 shares of USO (cost $2860).

Susan asks…

Investment question. How do I invest in oil or gold??

I know you can buy stocks in companies but I wanted to know if there is a place kind of like the movie “Trading Places” where you can buy and sell gold or oil and stuff like that.

John answers:

The guys in “Trading Places” were commodities brokers. You can’t simply “buy” commodities. Imagine if you bought a 1000 bbls of oil and, due to your inexperience in the commodities market, the barrels are delivered to your door. There are plenty of good commodities funds that you can use in invest in gold or oil, but you’ll never have access to the floor of the Exchange unless you’re an employee of a trading firm.

Mandy asks…

If i want to invest in oil, how do i go about doing this?

John answers:

The easiest way is to buy oil-related ETFs, such as USL, OIH, and XOP.

Ruth asks…

how can I invest in oil business in Romania or in USA(Texas) from Romania.Thanks!?

I want to invest in that business and I want more details about this.

John answers:

Hire a broker…….

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