[ale] OT: gas going up this weekend

[Omar Chanouha]

>I think an interesting solution would be to allow people participate
>in the futures market in small quantities.

If you are looking to hedge your implied gasoline position, you could
play the gas ETF UGA:

http://www.google.com/finance?q=uga

It is a more macro play then just Atlanta, but if gas goes up, you
make money, if gas goes down you lose.

If you have the margin, you could even sell puts on UGA. You get your
money up front, then if gas goes up, you keep it. It falls, you lose
it all. This is significantly more complex, but more than accessible
to the average investor.

Here is an article going into more detail:

http://seekingalpha.com/article/264456-how-i-hedged-summer-gas-prices-with-etf-uga

-O

On Wed, Apr 27, 2011 at 9:46 PM, Katherine Villyard <villyard at gmail.com> wrote:
> I shouldn't, but...
>
> On Wed, Apr 27, 2011 at 6:53 PM, Damon L. Chesser <damon at damtek.com> wrote:
>
>> BTW, If you double the cost of a product, but keep the same profit
>> margin, you will have "record" profits.  8% of $100 is $8:  8% of $200
>> is $16.  See?  Record profits!  We have to do SOMETHING!  THEY are
>> raking in money hand over fists!
>
> Your example implies but doesn't specifically state manufacturing
> costs.  If you make a product and sell it for $100, and you have a
> profit of 8%, or $8, then it cost you $92 to make it.  If double the
> cost of the product you make for $92 and sell it for $200, you have a
> profit of $108, or 54%.
>
> Does it really cost your hypothetical company twice as much to make
> the same product this year as it did last year?
>
> Katherine
>
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