"We still have plenty of time, so let's try to average down our cost basis to around $16.5."
"Boss, are you saying that the price of crude oil will continue to fall?"
Chen Dong nodded, his tone resolute.
"That's right. Based on the current trend, a price of crude oil below $16.5 per barrel would be more reasonable."
"only......"
Wangcai looked at Chen Dong curiously; it was the first time he had ever seen Chen Dong so troubled.
"Just what kind of boss?"
Chen Dong frowned slightly as he spoke.
"The problem is that the current trading volume is relatively low. If we build a position of 30,000 lots, our cost will inevitably be increased."
"If I establish a position at the ideal price, I'm afraid there won't be enough counterparties available."
This is also what gives Chen Dong the biggest headache.
Historically, the largest increase in international crude oil futures trading volume occurred in mid-July, while the most rapid price surge occurred during Iraq's war of aggression.
At this time, the abnormal fluctuations in crude oil prices attracted countless scoundrels and monsters.
Logically speaking, this is the safest time to establish a position.
However, to maximize one's own interests, one must act before the outbreak occurs.
This is essentially a dead end.
"puff!"
Wangcai chuckled and said.
"Boss, we can accumulate shares while simultaneously suppressing prices."
"Hedge?"
Chen Dong inquired.
"That's right!"
Wangcai nodded and continued.
"Didn't you yourself say that crude oil prices will continue to fall, down to around $16.5 per barrel?"
Chen Dong nodded, signaling him to continue.
"We can do this: first, establish a small short position. When the price goes down, use the profit from this position to offset the loss from the long position. This is equivalent to us establishing a position at a low price in advance."
Chen Dong's eyes lit up, and he patted Wangcai on the shoulder with a smile.
"Okay, I'll do it your way. I just want the result!"
"By the end of June, there will be 30,000 more open crude oil futures contracts for the consecutive month."
"If you can do it, after this transaction is completed, in addition to the dividends you are entitled to, I will give you an extra $1 million."
$1 million?
Wangcai's eyes turned red.
......
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