In this video, I discuss what I'm seeing with the Vanguard High Dividend Yield ETF and why I think it's still potentially risky here. The calculation for options is very similar. He is a proud father and I love him for that and I can't blame him for not being around at the moment. The 1500% pre-market gains showing on some ticker feeds aren't real. See you at the top! The reverse share split will not affect any shareholder’s percentage interest in USO, except to the extent that the reverse share split results in a shareholder receiving cash in the transaction. The collapse and crash of crude oil occurred due to an ill-timed double black swan event. If you happen to have 10 contracts, you will own a “fractional” contract. The NYSE Arca does not permit the trading of fractional shares. Volume has shot through the roof since the middle of March, but buying volume for USO down below the $3-4 range has started improving. The following table shows the effect of a hypothetical 1 for 8 reverse share split: Hypothetical Example of a 1-for-8 Reverse Share Split: Period # of Shares Net Asset Value (NAV) Total ValuePre-Split 120 $5 $600Post-Split 15 $40 $600, Redemption of Fractional Shares and Tax Consequences for the Reverse Share Split. This one, however, captured more attention since USO is up to around $4 billion in assets and was the target investment of choice for those looking to speculate on oil prices. The best example is sister fund United States Natural Gas (NYSEMKT:UNG), which attempts to track the spot price of natural gas. Why isn’t the far-left media showing the following coronavirus chart to the American people? #DeJoy2TheWorld! But the changes that the fund's management team look like it might save the fund after all. A look at trading volume shows buying interest is increasing. How does USO replicate performance? a pro. Yet although investors can expect a huge bump higher in the fund's share price soon, it won't be for the reasons they like -- and it's a tactic that an investment similar to U.S. Oil Fund has used before. Let’s start out by clarifying a key concept. If you liked this article/video, please click the LIKE button or share it on Twitter, Facebook, etc. I’m a newbie in shares & stocks. As you can see, a reverse stock split is an offsetting transaction. I started my trading journey about 2 years ago. Let’s assume you owned 80 shares prior to the split. Reverse Stock Splits Aren’t All Bad. As an example, say you own 800 shares of the fund prior to the split. As described below, shareholders otherwise entitled to receive fractional shares as a result of the reverse share split will thus receive cash in lieu of such fractional shares. #StopTheSteel NATIONWIDE RALLIES TODAY! Well, This is a really good Trade Room/Education group; they have thought of everything to help you elevate your trading game. USO has decided to implement the reverse share split for two reasons. USO Oil ETF To Execute 1-For-8 Reverse Stock Split, Bond ETFs, Retail Bagholders, & “Shame On The FT”, Dad Teaches Daughter a Lesson for Bullying Another Girl by Taking the Girl on a Shopping Spree, #Watermark TRUMP DHS Encrypted EVERY Ballot- Arrests Imminent, THERE’S MORE TO TRUMP’S LATEST MOVE THAN MEETS THE EYE! During last week's collapse in the oil market, many of the major oil funds were taking extraordinary steps to prevent the collapse in themselves too. The reverse share split will reduce the number of USO’s shares outstanding and will result in a proportionate increase in the net asset value per share (“NAV”) of USO. room, and also private and group coaching. The option price was zero, but now it’s at $.01 and its asking me to roll or close. An oil supply war, and a collapse of demand. The USO fund is listed on the CBOE exchange, which means they need to maintain certain criteria to stay listed. Readers are wondering if oil fund prices will go up as quickly as they went down. In 12 years, shares have lost 99% of their value, and much of that owes to the poor performance of natural gas prices over the same period, other factors related to the fund's structure played their role in hurting returns as well. look at the history of companies that have done reverse splits on declining price action ... USO will complete its own reverse split in order to try to save the fund. The value isn’t off by much from when I started, but my options ha e been blown up. The risk of trading in securities markets can be substantial. The purpose is to increase the share price, while proportionally reducing the quantity you own. Don't think twice and sign up.The investment on your trading setup can go from 1500 to 3000 USD + funding your account. be realistic and please trade the odds in your favor, why on earth would you still be holding this. Coronavirus Tracking Bracelets Flooding Market, Ready To Snitch on People Who Don’t Distance, Election Fraud is NOT a Conspiracy, Credible Allegations of Fraud in Nevada, Biden Declares Victory, Why 70 Million Trump Voters Will Not Accept The Outcome, Washington D.C. The decision comes as Credit Suisse moves to "better align its product suite with its broader strategic growth plans". TRADEPRO Academy is an amazing Family of like minded people run by the most amazing people. The education is top notch - from Learning fundamentals through to day trading like. You should carefully consider if engaging in such activity is suitable for your own financial situation. Readers are wondering if oil fund prices will go up as quickly as they went down. If the share price of a security gets too high, a company can perform a stock split by issuing all shareholders an extra share, thereby halving the price of an individual share. Thank you Friends. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities. The founder comes across as a very, knowledgable and hard working man who has been humbled by his experience. They are trading with you every morning and you can ask them any questions. night their courses.I'm developing now my own strategy. Let’s assume you own 8 contracts of USO, pre-split, with a strike of $5. Highly recommended! no team support. Taking a person from traditional training methods to execute I feel is a challenge and found why most traders lack the understanding of the financial markets. David Dierking. As noted above, the NYSE Arca does not permit the trading of fractional shares. The United States Oil Fund (USO) did a 1:8 reverse split of its own. Trading psychology (Mind Over Market podcast) was immediate impact - looking forward to the full course. Body Language: Trump 2020 Election Remarks, Body Language: Tucker Carlson, Tony Bobulinski Alleged Dealings With Hunter & Joe Biden, Body Language: Tony Bobulinski, Biden China FBI, BEIJING BIDEN AND TRUMP’S LAST STAND AGAINST SOCIALISM, Guess what?! After some research I found them at Trade Pro Academy and found the community I had been looking for. After the reverse split, you'll only own 100 shares, but with each share worth $24, your total value is still $2,400. Split History. The information contained in this post is solely for educational purposes and does not constitute investment advice. One day he may realise his identity crisis and come out clean. For next 3-5 yr. The content is amazing and the Team is very supportive. Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more! I'm glad that I didn't waste any time watching YouTube videos and learned trading with Trade Pro Academy. So, you might be wondering why would the USO oil fund managers want to do this? Everything else remains the same and based on market conditions. Reverse split does not change the underlying assets in the fund, and doesn't boost its market value. However, investors should remember that when the stock price jumps after its reverse split, that's not cause for celebration. The reverse share split will reduce the number of USO’s shares outstanding and will result in a proportionate increase in the net asset value per share (“NAV”) of USO. After piling into oil futures and bankrupt companies, Robinhood account holders are making their riskiest bet yet. Share prices dropped to a low of nearly $2.00 a share, from approximately $11. Returns as of 11/12/2020. The worst of the plunge in oil prices might be over. What's likely to happen is that the stock price for the new shares after the reverse split will be about eight times higher than their price from before the reverse split. Cumulative Growth of a $10,000 Investment in Stock Advisor, United States Oil Fund's About to Jump, but Don't Start Celebrating @themotleyfool #stocks $USO $UNG, The U.S. Oil Fund Is Put on Notice by the SEC, Ditch These 3 Popular Oil ETFs and Consider Buying This 1 Instead, 1 Risk That Oil ETF Investors Need to Watch Closely, Still Own USO?