I would buy May 04 unlead gas calls. 1 contract runs about $1300 and you control 44000 gallons of unleaded gas. With $1,000,000 you could control about 770 contacts. So what can you make.
Unleaded gas always goes up in price in the summer so a 2 cent tick up in the price should yield 44000gals x 770 contracts x .02 tick up in price = $677600
A 5 cent (.05) tick up would net $2,778,160
So what do you do with your 2.75 million. Buy Aug/Sept heating oil calls. Heating oil prices peak in the summer not in the winter, unless there is some near term distoration involved.
If you can say Straddle, Butterfly or Stranghold you can make money. Forget about hawkin your used equipment on A/Gon for pennies on a dollar.
Disclaimer Past performance does not guarantee future success......... bet with your head not over it!!!
Hope this helped
Dave
Unleaded gas always goes up in price in the summer so a 2 cent tick up in the price should yield 44000gals x 770 contracts x .02 tick up in price = $677600
A 5 cent (.05) tick up would net $2,778,160
So what do you do with your 2.75 million. Buy Aug/Sept heating oil calls. Heating oil prices peak in the summer not in the winter, unless there is some near term distoration involved.
If you can say Straddle, Butterfly or Stranghold you can make money. Forget about hawkin your used equipment on A/Gon for pennies on a dollar.
Disclaimer Past performance does not guarantee future success......... bet with your head not over it!!!
Hope this helped
Dave