Nowhere to Go But Up: ETF Investors Pile Into Bets on Oil Rally

Catherine Ngai

BloombergApril 20, 2020

(Bloomberg) – For weeks, market watchers have wondered who, exactly, has been betting on oil’s rebound amid the worst price crash in history.

The answer is sitting on a 3,000-acre farm in Macon, Missouri.

Adam Masten, a freight broker who also grows corn and soybeans, has no formal training in trading oil. But when he started reading headlines this month about the market’s historic plunge, he figured a crash of that magnitude couldn’t last forever. So he pulled up his TD Ameritrade account and spent $2000 buying options on two bullish exchange-traded funds, betting that oil would go up.

“I had never traded oil before and I don’t like to put my money to work until I read about it,” he said. “So I’ve been reading about how demand is so low and supply is so high. I’ve even read about how if there’s no storage capacity, producers would pay people to take it off their hands.” But he didn’t think oil could stay that low, he said.

Moar….

https://finance.yahoo.com/news/nowhere-etf-investors-pile-bets-194318142.html