RE:RE:RE:RE:Tomorrow TradeWhy buy the contract which requires the price to move up to $51.25 or so for you to break even. Why not buy CPG and enjoy a 6% dividend in the interim? Moreover CPG tracks WTI so if oil goes to your breakeven price CPG shareholders will already have a capital gain and a nice divy. OIl contracts are great for corporate hedging and locking in prices and doing swaps to mitigate price risk for producers or consumers of oil barrels. CPG is capable of operaing in a lower oil price environment than this so even at $40 WTI their divy should remain intact. If oil is at $51 any time in the next 12 months, CPG willl be a lot higher than 12% and that is when you only start to make money.
Just on a relative basis I find CPG has much more upside so I would not go around celebrating your potential winnings just yet.
splurge