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More oil

I am beginning to wonder whether the mere fact that people are betting on oil moving to $200 a barrel will not in some way become a self fulfilling prophecy.

The interesting thing about options trading is that the easiest way to go broke (other than writing puts) is to buy deep out of the money options. Such options collapse in value with extraordinary speed. Just because everyone else thinks its a good idea doesnt mean it actually is a good idea.

I am intrigued that people wouldn’t opt for the payoff offered by near month futures contracts.


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