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look,see,FOMC Day > Later >
cash position here
Yep >>
2973.90
have a good weekend > Later
look see > Later
have a good weekend gang > Later
morning ramp > GILD
have a good weekend > Later
D > tail wags oily dog >
oil price as we know it is actually set in the oil futures market.contracts,
buyer and the seller are obligated to fulfill their side of the transaction on the specified date. > CME
D > Monkey business at it finest >
If what I remember was correct that contract that went Negative
had a "cash" value of 6 Billion usd
/clk20 was the May contract (cash settled DONE)Destruction
/clm20 June
/cln20 July
>================================================================
(Update 1425ET): It has been an exciting day for the USO ETF, if not so much its holders, and after growing speculation the largest oil ETF may have to follow its peer OIL and liquidate, moments ago USO was halted again, this time announcing that it has moved 5% of its futures into the August WTI contract, stating that it may invest in any month available due to market conditions, and warning that it may see significant deviations from its benchmark.
Moving the Goal Posts WTF
USO SAYS IT HAS MOVED SOME WTI HOLDINGS INTO AUGUST CONTRACT
USO: MAY INVEST IN ANY MONTH AVAILABLE DUE TO MARKET CONDITIONS
USO SAYS MAY SEE SIGNIFICANT DEVIATIONS FROM ITS BENCHMARK
USO HAS ABOUT 40% OF HOLDINGS IN JUNE CRUDE FUTURES CONTRACTS
USO HAS ABOUT 55% OF HOLDINGS IN JULY CRUDE FUTURES CONTRACTS
https://www.zerohedge.com/energy/june-wti-futures-crash-45-repeat-monday-massacre
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Real Cute one here > Lets force brokerages and all Oil Desks and Players retail and otherwise for "Emergency Code changes
to figure their RISKs in "NEGATIVES"
In an advisory notice published late on Tuesday, the CME Group said that, effective April 22, the clearing house will switch its options pricing and valuation model for certain crude and energy products (i.e., oil) to Bachelier "to accommodate negative prices in the underlying futures and allow for listing of options contracts with negative strikes for the set of products specifies below."
The switch will be effective for the margin cycle run at the end of trading on April 22 and will remain in place until further notice.
In other words, so great was the demand from CME clients to issue negative strike options after Monday's fiasco, that it will now be a regular staple of the commodity market for the duration of the coronavirus-induced demand collapse, where every month at contract maturity we should now expect the price of oil to be "pinned" deep in negative territory.
https://www.zerohedge.com/markets/cme-will-allow-negative-oil-options-effective-april-22
===============================================================
IB left holding the "Fuck You PAY Me ticket for blown out customers
Several Interactive Brokers LLC (“IBLLC”) customers held long positions in these CME and ICE Europe contracts, and as a result they incurred losses in excess of the equity in their accounts.
IBLLC has fulfilled the firm’s required variation margin settlements with the respective clearinghouses on behalf of its customers.
As a result, the Company has recognized an aggregate provisionary loss of approximately $88 million.
s Thomas Peterffy noted later on CNBC, "we had around 15% of the open interest in the May oil contract," which means other brokers likely have even more dramatic losses as the rest of the open interest faces losses, adding "we are going to have to learn to cope with negative futures prices."
Forward to around 1:20 for Peterffy's details:
CNBC: "Across the industry, do you think there is going to be some really serious pain?"
Peterffy: "There is about another half a billion dollars of losses that somebody is sitting on... and I do not know who those folks are."
https://www.zerohedge.com/energy/interactive-brokers-stuck-88-million-loss-after-oil-trading-clients-bust
NBR reverse splitting 50 to 1
today's loss 19.82%
13:16:47 stop out 100 TQQQ 57.822 > reload ?? wait and see
patterns real ragged to play in
10:57:33 in 100 TQQQ @ 57.51 > see what happens
well said > if you have knowledge of the
derivatives and know the composition of
what your looking at the risk/odds of worst/best
case scenario are clear enough But "today" in
the energy patch is one for the history books
this was is crazy but with due caution and trading
small the "select" oil patch trade pot odds looks
pretty tempting for certain looking into the months
ahead Small Positions
I'll be looking hard at the survivors in the next
few days and the /CLM20 contract
Margin calls from Hell
OR from CME
It's your Oil and I don't care where in the Hell you put it
You bought it > You own it > It's Yours > Pay Me
I'm a VOL player so contango / backwardation is nothing
new here
NBR will prob be delisted and go OTC penny stock or Banko
today's "Negative" current Futs contract close will leave
corpses all over the oil sector with the fallout to
be determined
we shall see soon enough > it will be real ugly
USO and others may Blow Up like XIV >
it's already happening > some are already gone
will find maybe on Tuesday what is left
remember do not look at USO itself
USO, delivers its exposure to oil using near-month futures.
USO gets exposure to oil using derivatives, like all oil ETPs.
Derivative returns can vary greatly from spot oil prices
USO holds front-month futures contracts on WTI, rolling into the
next contract every month. This method is particularly sensitive
e to short-term changes in spot prices, but can also result in heavy roll costs. Like Today
May WTI halted at -$7.50 (-140%)
USO owned 25% of the outstanding volume of May WTI
oil futures contracts as of last week.
With that contract set to expire Tuesday,
obvious long squeeze. USO cannot take physical
delivery of the oil contracts they hold
recheck the vix #'s > these are straight from CBOE >
04/03/2020, 51.11, 52.29, 46.74, 46.80
04/06/2020, 44.17, 45.73, 43.45, 45.24
04/07/2020, 44.83, 47.51, 43.51, 46.70
04/08/2020, 45.90, 47.28, 42.53, 43.35
04/09/2020, 43.00, 45.73, 41.39, 41.67
04/13/2020, 44.60, 45.04, 41.17, 41.17
04/14/2020, 40.24, 40.57, 37.31, 37.76
04/15/2020, 39.40, 43.23, 39.34, 40.84 <<<<
04/16/2020, 41.92, 43.02, 39.87, 40.11
04/17/2020, 39.50, 40.26, 37.63, 38.15
Have a good weekend gang > Later
Yep > I missed that one > no matter
that was a "gift"
AAPL Thurs April 30 4:30 PM
all the Big banks start on Tuesday 14th
with JPM before RTH @ 6:55 AM
Also next week is Apr OpEx
that's $1433 in USD per month
$358 wk "AND" it is taxable
same to all > stay safe
last 2 min should be a party
sounds like a plan > all good here
might look at tqqq options
all is good here in home jail
DD > are you on TOS?
Yep > over night Cram job was real "special"
still cash position > missed hook > not chasing
"NOT" adult content
Yep > some entertainment for later >
worse now than then by a big factor of speed/complexity