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TRADERS POUR $977 MILLION INTO LEVERED BET THAT OIL WILL PLUNGE
Oil traders made a big leveraged bet that prices would fall from war-driven highs — but many are losing badly.
Investors poured $977M into the inverse oil ETF (SCO) in March, its biggest monthly inflow ever. The fund aims to profit when oil drops, but instead plunged 41% as crude surged.
The bet hinges on a quick end to conflict. While the fund briefly jumped 8% after signals of de-escalation, oil prices remain elevated — rising as high as $119 and still around $102, well above February levels.
Ongoing supply disruptions, especially around the Strait of Hormuz, could keep prices high for months. Even a ceasefire may not be enough for short traders to recover.
Bottom line: this is a high-risk “war ends soon” trade — and so far, it’s backfiring.
Zhang Zhan, a Chinese citizen journalist who criticized the government's handling of the outbreak in Wuhan, was sentenced to four years in prison. https://t.co/6doLGl3GLH
@AD340SOYE Expecting a slight pull back after that huge rally up but 50 is possible if not more. I’m expecting Alibaba like numbers in the future. Definitely one to hold