The Lemon Fool

Hi All, BP up a tasty 5% today on the oil price spike. Can’t imagine it’s going to stay there if the oil price drops back as seems highly likely to me at some point. Thinking about selling while the price is elevated and buying back when the price falls back to secure a 5% uplift to my BP dividends….?

ATB

Pref

PrefInvestor wrote:Hi All, BP up a tasty 5% today on the oil price spike. Can’t imagine it’s going to stay there if the oil price drops back as seems highly likely to me at some point. Thinking about selling while the price is elevated and buying back when the price falls back to secure a 5% uplift to my BP dividends….?

ATB

Pref

Why not save yourself the trading & stamp costs and (short) spread bet the BP price?

Take the profit once done and buy more shares.

If you really do believe its "highly likely".

moorfield wrote:Why not save yourself the trading & stamp costs and (short) spread bet the BP price?

Take the profit once done and buy more shares.

If you really do believe its "highly likely".

Well moorfield, I guess that’s maybe what a confident trader would do. But I have tried spreadbetting and managed to lose a fair amount of virtual money trying out some trades, so I can easily believe that most who do it lose money. And that’s not an outcome that’s acceptable to me.

If things move against me (ie the BP share price rises and stays elevated) then with my approach then I am just left with my sale proceeds, which I could then deploy elsewhere in the market if I can’t buyback into BP. If I spreadbet and that happens I will lose money and a lot more than the stamp duty and brokers commission. No contest IMHO.

Also doing things your way would involve moving money back and forth between my ISA and the spreadbetting account, which would likely cause me problems with the annual £20,000 ISA limit.

But each to their own.

ATB

Pref

Hi Again All, Well thought I’d have a bit more time to execute my plan but looks like the oil spike may be over already and BP has already lost about half of Monday’s gains. Oh well.....next time !.

ATB

Pref