Rollover – Buy Oil and get $39
“10 dollars, 9 dollars, 8 dollars… … I can’t see the floor!”
“What’s up? What is the price?”
In April 2020, a battle was going on among oil futures traders.
This is because the price of May oil futures, which had hovered around $20 until last week, was falling at a frightening pace.
“There are a lot of rollovers, but there is no one to accept them!”
“I think it’s crazy! Now it’s four dollars! No one wants to buy it for $4!”
In fact, everyone was expecting a price drop to some extent.
The next day, the 21st, was the expiration date of the May contract, which meant that investors holding a long position on April 21st would receive crude oil on May 1.
But the majority of futures investors don’t really need oil.
This is because there is no place to receive and store crude oil and no means to transport it.
Therefore, usually, those who actually need crude oil purchase these maturities and solve the market volume.
But now, the oil storage facilities are full due to the increase in oil prices and the corona crisis, and they are not accepting speculative quantities because they only cost money even if they are bought because they are cheap.
“this… … Less than a dollar!”
“minus? Aren’t you crazy?”
A panic was taking place in the oil futures market. In one day, $20 oil went down to minus.
“Sell! Sell it anyway!”
A person with a long position tried to liquidate the position by any means, but in an unprecedented situation, no one was willing to accept it, and as a result, a bigger plunge followed.
“Minus five dollars… … 6 dollars… … .”
“Oh My God! It’s over minus twenty dollars!”
“It went down to $30!”
“Sell! Please sell it! damn! What’s up! this!”
“39 dollars… … Five!”
On that day, WTI oil futures fell to an unprecedented minus $39.
He meant that he would pay $39 a barrel for oil.
“Oh My God! Did the price really come out negative?”
“How much did you lose in one day? Almost 60 dollars, right?”
Of course, it was only a very short time to hit the floor. But someone who was waiting for that short time could make a huge profit.
“Today is the day we got our team up and it was the most profitable day.”
After the futures market closed that day, Eugene’s oil futures team organized a celebration.
Record profits were generated by arranging short positions that had been maintained and occupying a large number of long positions.
“It’s really going to be negative… … .”
“what? You still don’t believe the boss’s judgment?”
“no. It’s not like that. To be honest, the WTI minus was too much, right?”
“It is not. In fact, I was also skeptical of the structure.”
“haha… … ’cause I’m crazy The profit we made today is twice as much as last year.”
“Isn’t everyone alike?”
“That’s it. Also… … .”
“The results of the boss’ analysis were just to be trusted and followed.”
All had happy faces. In one day’s investment, everyone was rewarded with six zeros.
It’s not uncommon for Wall Street investors to get high salaries, but it’s different with this company.
Moreover, in the case of other investment institutions, each day is a series of stresses that go back and forth between profits and losses, making bloody judgments, but there is no failure here.
Even if a short-term loss occurred, it could be recovered quickly if the above guidelines were faithfully followed.
While other Wall Street traders struggled between gains and losses, they were vying for who made how much profit.
As a result, the satisfaction of the employees was unmatched anywhere else.
That doesn’t mean that Eugene pays huge remuneration to useless employees.
With the same information, some people barely earn hundreds of thousands of dollars, while others make hundreds of thousands or even billions of dollars.
Even on this day, some traders liquidated their positions as soon as the oil price went negative, while others waited a bit more daringly and liquidated with huge profits at a spot close to the bottom, then immediately built a long position and made a profit by tens of dollars again. was obtained with
It is in the financial investment world where individual abilities are so important.
Naturally, to create the team it is today, it has been scouting traders who are considered the best on Wall Street, and is running it with a fair amount of pay.
“Everyone has been through a lot. Tomorrow, another war of tomorrow awaits us.”
When the team leader gives everyone a word of encouragement, cheers erupt from all sides. Everyone was happy with the huge bonus they would receive as a result of today’s performance.
“It’s a pity we can’t pop champagne at a time like this.”
“That’s it. I wish I could take off my mask, let alone champagne.”
Although it sounds like a festival atmosphere, all of them were thoroughly covering their faces with masks imported from Korea.
That is the first and foremost guideline from the top. Everyone should wear a mask both inside and outside the company.
If possible, avoid participating in events other than work and home.
Disinfect your hands frequently with the disinfectant gel provided not only on your desk, but also everywhere!
In this way, various guidelines have been issued in preparation for the corona virus, and there was not a lot of backlash at first to say that if you do not follow these guidelines, you will immediately resign.
But what about it? The instructions from the top down here are absolute. What’s more, it’s so easy to cut people off in the US.
“Don’t let everyone get excited and go out for a drink. If I get caught, I will leave immediately.”
The manager also asked with a bitter smile. He still thought it was too much of a measure, but he was just a part of the many cogs in the company.
Now everyone knows it well. The fact that all of the people working here are incredibly talented individuals, but unless it’s a top-down guideline, they’re just one of many white-collar people on Wall Street.
Also, as time went on, everyone was convinced by the guidelines that came down from above.
The spread of Corona was far greater than everyone thought.
Corona, which was thought to only happen in China far away, has spread out of control once it landed in the United States.
However, I was feeling that it was much safer here just to wear a mask according to the instructions given by the boss and refrain from external events.
After such a quiet celebration of not drinking a can of cola, let alone drinking, the traders quietly began to leave.
In fact, what they’ve accomplished today was terrific enough to go down in investment history, but New York City is now almost in a funeral atmosphere.
“It seems that New York is spreading the corona virus the fastest in the United States. It is said that the number of confirmed cases has already exceeded 200,000.”
“Everyone has to be careful. Especially the mask.”
“Absolutely. Thanks to the directive to leave unconditionally if it happens to go outside without a mask, the employees are definitely less anxious. We are working hard to ensure that not only our employees but also their families wear masks.”
Eugene put in a lot of effort to supply masks to all the companies he invested in directly or indirectly.
Perhaps the effort put into this work outweighs any investment.
We are also working hard to educate our employees and their families on the prevention of corona infection.
“200,000 people in New York State alone. That’s great.”
“It is said that it is almost one-third of the number of confirmed cases in the United States.”
This may be because New York has high access to health care compared to other areas.
The general opinion is that the actual number of confirmed cases in the U.S. will be much higher than that announced.
“Hundreds of people are dying every day in New York alone.”
“If this is the case, I don’t know when it will end.”
“As the boss said, it would have been better if I wore a mask.”
Although there have been claims by health academics that masks should be mandatory to prevent the spread of the virus in the United States, Trump was only stating that he recommended wearing masks voluntarily.
Moreover, he said that he had no intention of using a mask, and showed support for mask uselessness.
Even so, public opinion in the United States, which has been extremely divided in recent years, has once again created a great conflict over the president’s disregard for such masks.
Even during the Spanish flu epidemic 100 years ago, people knew it was much safer to wear a mask.
In a sense, it would not be wrong to say that today’s society is going back to 100 years ago.
“But shouldn’t we try something with Donald?”
Joanna seems to think Eugene has enough influence over President Trump.
“Because I’m not the kind of person who listens to anyone’s advice.”
Eugene shook her head. I’ve already talked to Ivanka and Kushner to consider following the CDC’s recommendations, but to no avail.
It seemed to some that agitating their supporters was far more important than the health of the people.
“I am worried about how long this situation will last. really! So today alone, we made about 7.9 billion dollars in profit. Most of it comes from oil futures.”
Joanna was briefly concerned about the safety of the world, but eventually returns to the story of the money she earned.
“All profits in the oil futures market are returned to long positions.”
“Is this the end of the bear market?”
“I think it is highly likely. You will never see such an outrageous price again.”
“I think so, too. However, if production cuts are not made, I wonder if oil prices will rise.”
Joanna is the most confident in Eugene’s judgment. But he’s not foolish enough to not even raise questions from a general point of view.
For Eugene, someone who can challenge her judgment is far more valuable than someone who unconditionally follows her words.
“If there are no special problems, the oil-producing countries will take action. At this rate, you wouldn’t know that everyone would be annihilated.”
“I see. Then I will direct you in that direction.”
“And the foundation is looking for ways to help people who are suffering from the coronavirus.”
“Then we will have to raise the necessary funds there.”
“uh. It’s not urgent, so think about the resources you can put out by next month.”
Making money is as easy as breathing if you know the future.
Just remembering a few events might make you the richest person in the world.
So Eugene didn’t think much about being rich.
Rather, he is much more focused on what he can do with that wealth.
Of course, I am not talking about charity work. The tens of billions of dollars a year in philanthropy was just a way to get him on the path he wanted.