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Best way for individual consumers to hedge their gasoline?
Posted on 2/24/11 at 7:43 am
Posted on 2/24/11 at 7:43 am
I'm looking for a way to hedge my gasoline exposure for the rest of the year... which should be about 600 gallons worth. Is the UGA ETF the best option to hedge this amount of gasoline exposure? Even a mini gasoline futures contract would be way too many gallons (and I have no interest in paying margin calls), and other options like Pricelock are basically ridiculously expensive call options. I know that the UGA ETF would have problems due to "contango decay" as the contracts they use roll over, and I'd have short term capital gains to pay if I sold my shares at a profit any time in the next 12 months, but it seem like this may be my best option.
This post was edited on 2/24/11 at 7:44 am
4
Posted on 2/24/11 at 7:53 am to GeneralLee
I have some of an oil index myself and look forward to high oil and gas prices. The big problem I've had with some of these funds is the relatively high expense ratio.
However, 600 gallons of gas isn't really all that much and you may not get much value for trying. If you operated a large trucking fleet that would be another matter, of course.
However, 600 gallons of gas isn't really all that much and you may not get much value for trying. If you operated a large trucking fleet that would be another matter, of course.
Posted on 2/24/11 at 7:54 am to GeneralLee
You're joking, right? You think you need to hedge 600 gallons?
Posted on 2/24/11 at 8:12 am to GeneralLee
GeneralLee
Did you ever get rid of your position in Southern Star Energy from a couple of years back? I seem to remember you touting them pretty hard and some of us tried to talk you out of holding them?
Did you ever get rid of your position in Southern Star Energy from a couple of years back? I seem to remember you touting them pretty hard and some of us tried to talk you out of holding them?
Posted on 2/24/11 at 8:35 am to LSURussian
2400 dollars is srs bidness
Posted on 2/24/11 at 8:37 am to TheHiddenFlask
quote:To get to that amount, wouldn't the price of gasoline have to go up approximately $4/gallon, to more than $7/gallon?
2400 dollars is srs bidness
Posted on 2/24/11 at 8:44 am to TigerDog83
quote:
Did you ever get rid of your position in Southern Star Energy from a couple of years back?
Yep I sold a few years ago at roughly the same price I bought them at. Lesson learned.... Will never touch another penny stock as long as I live!
TigerDog- do you think Haynesville Shale wells will ever become economical north of I-20? Is the condensate that these wells produce a valuable product? Have you heard anything of this well in south Arkansas that is generating some buzz?
Posted on 2/24/11 at 8:45 am to TheHiddenFlask
quote:
2400 dollars is srs bidness
Hey that's about 2.4 acres in Montana!
Posted on 2/24/11 at 8:46 am to LSURussian
I just did 600 times current price. No real way to quantify the value.
Posted on 2/24/11 at 9:06 am to GeneralLee
A few years back when fuel first started going up quickly, I looked for ways to hedge. We were going through about 1500 gal of deisel a day just for our equipment. Didn't include work trucks, dump trucks, low boys, etc. From what I remember, we did not have enough cash to properly hedge. If anyone has some good ideas I'd like to hear them. State projects have price adjustments for fuel, but you can get screwed on long term private contracts.
Posted on 2/24/11 at 9:11 am to GeneralLee
A few years back when fuel first started going up quickly, I looked for ways to hedge. We were going through about 1500 gal of deisel a day just for our equipment. Didn't include work trucks, dump trucks, low boys, etc. From what I remember, we did not have enough cash to properly hedge. If anyone has some good ideas I'd like to hear them. State projects have price adjustments for fuel, but you can get screwed on long term private contracts.
Posted on 2/24/11 at 10:40 am to GeneralLee
quote:
Have you heard anything of this well in south Arkansas that is generating some buzz?
Fcuk that. I want something that isn't generating buzz today but will next week.
Posted on 2/24/11 at 11:23 am to GeneralLee
Overweighting VDE during 4Q 2008/2009 and buying XOM last year helped in this regard, could buy years of gas on the profit. I would rather take that risk than buy underperforming CCF funds that will not track worth a damn.
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