10-02-2022, 11:09 AM
Hedging against high fuel prices next spring
<!-- SC_OFF --><div class="md"><p>My son and I are thinking about driving across country next spring. With the SPR at its lowest level in decades and new oil permits being denied by the current regime in DC (not to mention crazy geopolitical goings on), I'm concerned the price of fuel may be at astronomical levels by then. </p> <p>What would be the best way to hedge against super high fuel prices? I was thinking something along the lines of buying April calls for oil with a strike at $100/bbl. That way if the options expire worthless that means fuel should still be within a couple bucks of what it is now, but if oil moons (so to speak) I'll have profits with which to purchase the fuel for the trip... but I'm just taking a stab in the dark here. </p> <p>Anyone know the best way to go about this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Model_Citizen_1776"> /u/Model_Citizen_1776 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/xtehq5/hedging_against_high_fuel_prices_next_spring/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/xtehq5/hedging_against_high_fuel_prices_next_spring/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>My son and I are thinking about driving across country next spring. With the SPR at its lowest level in decades and new oil permits being denied by the current regime in DC (not to mention crazy geopolitical goings on), I'm concerned the price of fuel may be at astronomical levels by then. </p> <p>What would be the best way to hedge against super high fuel prices? I was thinking something along the lines of buying April calls for oil with a strike at $100/bbl. That way if the options expire worthless that means fuel should still be within a couple bucks of what it is now, but if oil moons (so to speak) I'll have profits with which to purchase the fuel for the trip... but I'm just taking a stab in the dark here. </p> <p>Anyone know the best way to go about this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Model_Citizen_1776"> /u/Model_Citizen_1776 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/xtehq5/hedging_against_high_fuel_prices_next_spring/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/xtehq5/hedging_against_high_fuel_prices_next_spring/">[comments]</a></span>