Read the announcement. OOO has switched from June to September...

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Patrick08

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23/04/20

13:23

Post #: 44212188
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Originally posted by Jmorson: ↑

I don't really understand what you're asking? OOO opened up reflecting its NAV, which holds June WTI. The June WTI was up 24% from yesterday. OOO opened higher. It's share price doesn't exactly follow it's NAV as its market makers don't act on every trade. If you look yesterday it closed higher than its NAV so its share price wont open exactly 24% up on its close price. Also if you look at the announcements form betashares they stated this morning that they will be changing from 1 month to 3 months forwarding so it's NAV will be harder to determine exactly as they change. There will also be costs involved in doing so. The NAV is now changing dramatically as the June WTI was $14.15 this morning and July was $21.
OOO doesn't directly offer oil exposure, it offers exposure to the WTI futures. There is a very big difference, like (-$37 June WTI) to ($20 spot price).
Im not suggesting you buy this etf in any form, its costs and assosciated risks are outstanding. But I do suggest you research what your going to invest in.

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Read the announcement. OOO has switched from June to September contracts. This does not change the NAV but it changes the leverage to oil price. Using simple numbers: if they sold June futures at $14 and bought Sept at $28, you now own half as many barrels of oil/futures contracts. Number of futures contracts held should really be a daily disclosed number.

OOO Price at posting: $19.36 Sentiment: Sell Disclosure: Held
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