UCO purchase

[Scallywag]

I hope you get that straightened out. I kept watching and reading about some of these things - UCO, USO - but decided I just didn't understand them enough to invest. That's always the first rule of investing so I opted out.

I did do some research but apparently not enough. The way I understood it, USO was a no no for me as they actually purchase oil future contracts while UCO & SCO did not deal directly in oil but in derivatives. As you know, my nest egg is small so I thought I was being extra careful, then a friend who actually trades corn contracts scared the daylights out of me by asking me if I might need to actually buy the oil / take possession of barrels of oil if I didn't get rid of it today? I thought UCO / SCO were derivatives that did NOT deal with oil directly but her questioning was enough to cause me to momentarily panic. That was / is enough of a signal to want out as this is not anything I understand. The more I tried to research it yesterday the more confused I got. I just don't understand why this is supposed to be short term, why I can't hold it long term, if this is options etc. It's just too confusing so I want out (at least for now)

I login to my Fidelity account this morning and lo & behold - there is no sell button for UCO! I am hoping that it's just temporary until the reverse split is carried out. I am almost scared to death I will be liquidated out later today and the stress is not worth it.

[QuarterMillionMan]

This was my UCO purchase and sell on 4/20/20, I miscalculated and thought I lost $300 but only lost $122. UCO has both buy and sell, and no possession of barrels is needed (lol).

[Scallywag]

This was my UCO purchase and sell on 4/20/20, I miscalculated and thought I lost $300 but only lost $122. UCO has both buy and sell, and no possession of barrels is needed (lol).

Boy that's a relief! She scared me straight with her, "you need to sell tomorrow or buy all that oil!" in her sharp Southern accent. Can you trade it just like a regular ETF? There's still no buy or sell option for me

[QuarterMillionMan]

Yes UCO is traded like a regular ETF. Not sure why your's doesn't have a buy or sell option, mine's had buy or sell.

[Scallywag]

Yes UCO is traded like a regular ETF. Not sure why your's doesn't have a buy or sell option, mine's had buy or sell.

Do you know why UCO shouldn't be held for the long term? I understand it has a large expense ratio (0.95) but a lot of mutual funds also do. What am I missing here?

[LivingAlmostLarge]

I sold at 2.50 and I am debating getting back in.

[Scallywag]

I still can't trade UCO. I just want to SCREAM. There's NO buy or sell button and its all greyed out.

[disneysteve]

I still can't trade UCO. I just want to SCREAM. There's NO buy or sell button and its all greyed out.

Call customer service

[QuarterMillionMan]

Do you know why UCO shouldn't be held for the long term? I understand it has a large expense ratio (0.95) but a lot of mutual funds also do. What am I missing here?

It's too volatile. I guess it could be held long term as long as you watch it.

[Scallywag]

It's too volatile. I guess it could be held long term as long as you watch it.

Unlike UCO, USO actually buys *oil future contracts*. That means the fund needs to sell the contracts on time or take possession of the oil if they screw up? This is why I am confused.

[Like2Plan]

I still can't trade UCO. I just want to SCREAM. There's NO buy or sell button and its all greyed out.

Did you ever get that sold?

[LivingAlmostLarge]

they resplit it backwards

[Scallywag]

Did you ever get that sold?

Yes! Eventually sold it and I'm never doing this again. Learned a hard lesson there.