Quote:
Originally Posted by Wayne at Pelican Parts
How do you sell Oil short? I'm looking to do that now...
-Wayne
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You could use an ETF like the USO which is:
An ETF that seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil. The fund is nondiversified.
Learn more here:
http://www.unitedstatesoilfund.com/
My suggestion would be to look into option strategies rather than outright shorting the underlying. Look into put buying strategies, or sell the USO short and buy upside calls as protection.
Going outright short is probably the right thing to do in the long run, but unless you are really good at timing when to go short you can get run over quickly. Options are a much safer way to play than outright shorting.
Rich