First oil short
It was with some trepidation that I opened my first real-life short position last Friday. Holding a short position is more difficult than holding a long position, if only in terms of expenditure of your precious nervous cells, which don't regenerate. I would never even consider being short without a hedge. Fortunately, an out-of-the-money call was available and the price was reasonable.
And so my first real-life short position was initiated.
I am very excited about this investment. XOM at $61.14 is a very steady, solid, and reliable short, which has all the same qualities I look for in my real-life long positions. It's not going to make me rich overnight, but I expect it to slide to zero in a very gradual and steady manner.
I put the proceeds into SDY (75%) and GE (25%).
It will be a slow and exciting ride to the bottom, where zero is the limit.
More oil shorts are on the way, once Mr. Market gives me a confirmation that my timing is right and the strategy is working. I won't be acting in any hurry. This secular bear market in oil will last many years, and will provide more than enough money for all of us.
So let the fun begin!