I shorted oil using a Horizons BetaPro ETF (HOD.TO) at \$10.92 purchase price for 250 shares. Spot crude oil is about \$74.75 at the time. US DB Oil Fund (DBO), which is my proxy for my oil trades, is trading around \$24.35 at the time of this entry. This is just below previous support-turned-resistance at \$25. See Figure 1.
[caption id="" align="aligncenter" width="570" caption="U.S. DB Oil Fund (DBO)"][/caption]
This position is also my bet on an equities downturn soon. I considered buying puts (shorting) on Barrick Gold (ABX.TO), but I chose to be more conservative with a smaller position in HOD.TO instead.
I actually opened a low-ball offer on HOD.TO at 10.60 in the morning. But seeing that HOD.TO never touched below 10.70 today, I got impatient and executed a market order when I saw it edging above its trading range.
My stop for this position is 10.60. Risk is \$0.32 x 250 = 80 + \$9.90 commission. Which is about 0.92% of my RRSP trading account. This is more in-line with my preferred risk level than my recent options trades.
[caption id="" align="aligncenter" width="570" caption="DBO intraday"]1[/caption]