Three Hedging Strategies For Oil Prices

Fundamental Options1.54K FollowersFollow5ShareSavePlay(17min)CommentsSummaryThe Middle East conflict has severely disrupted global energy and helium supplies, threatening inflation and semiconductor supply chains.I am hedging my portfolio with short-term options on United States Oil Fund LP ETF, seeking to profit from oil price volatility and backwardation.Alternative hedges include short Calls on ProShares UltraShort Bloomberg Crude Oil ETF and equity positions in Devon Energy for balanced oil/nat gas exposure.My risk/reward analysis favors flexible, dynamic hedging strategies to mitigate inflation and rate risks impacting growth stocks and AI chip exposures.

Getty Images Article Thesis The Middle East conflict escalated rapidly from what some touted to be a few weeks campaign to business and energy infrastructure damages and major global disruptions of critical commodities. Many civilian targets were hit inThis article was written byFundamental Options1.54K FollowersFollow"Fundamental Options" would be the title of my investing style, because I combine fundamental analysis with the power of options. I use Fundamental Analysis to quantitatively and qualitatively assess individual stocks and ETFs, and I pursue various strategies: Income oriented, especially BDCs, but also Utilities; Growth At A Reasonable Price, especially Tech, having a background in Software Development; Deep Value, based on Discounted Cash Flow and / or other industry specific valuation methods; Dividend Aristocrats.While I usually invest in stocks for long-term, I also have 20-25 strategies involving options that I use for various purposes: hedging stocks; bullish stock / ETF substitutes with improved risk / reward; neutral trades; trading volatility; earnings-related trades.Teaching is another passion of mine, I used to be a formal on non-formal teacher or coach in different areas of life, including authoring of a free local investing newsletter in the last years.Analyst’s Disclosure: I/we have a beneficial long position in the shares of DVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.