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Well holy smoke is this ain’t no jokers okay yesterday i came out with a video on this channel i think a lot of you guys watch this video why i got eleven thousand dollars of us bow at $2 u.s. oh being an oil etf okay and people woke up shocked absolutely shocked to open their tablets and their computers and their smartphones today to see us so was trading at
Seventeen dollars and eighty-eight cents currently the open was at eighteen dollars in one cent and people were shocked by this so like what why why did i go all-in uso why didn’t i like buy a million call options and the stock and things like that and it was hilarious reading through the comments okay i mean the comments is that this morning were hilarious on that
Video i mean mass amounts of comments from people that a lot of these individuals don’t regularly watch my channel you know they just sometimes watch my channel let’s put it that way they’re not like super into the stock market but a lot of folks these are these are the two comments like 99% of comments were these two comments who’s waiting for jeremy to make made
100k video because people literally thought i made like a hundred thousand dollars today and then all the other comments were he lost money and told things were wrong both of these are wrong okay this was literally 99% of the comments on that video and both of them are wrong no i did not lose money and no i surely didn’t make 100k or anywhere remotely close to the
Hat okay i have three objectives with this video here today okay the first one i’m gonna basically tell you if i lost money or if i made money on this i’ll calculate all the numbers and show you exactly what we’re looking at the second thing we’re talking about is exactly what happened here with us oh and i’m gonna explain to you exactly what happened essentially
Okay the third thing is i’m gonna tell you if i’m gonna sell us oh no or if i’m thinking about i’m or my stances kind of change there okay obviously this is a big change here in the price what it looks like and so i’m explain to you if i’m thinking about selling or anything like that okay so let me just say that a lot of the people that watch my videos within that
Like first eight hours of a video coming out a lot of you guys okay you guys aren’t really confused about what happened here okay a lot of you guys aren’t but it’s the wider youtube community that kind of comes in after about eight hours okay so smash the thumbs up button if you’re one of those people that you know you’re here in the first few hours let’s put that
Way i just want to say i love you guys okay i never get to tell you we are so caught up in the money all the time and this talking nash talking why should i went on the market man i never get to say i appreciate you guys for smashing that thumbs up button thank you for what you do okay i got the houses i got the car i got the stock accounts none of that matters
All that matters at this point in time is that i beat graham stefon in the thumbs up challenge okay that guy is so hard to compete with when it comes to thumbs up it every day i pretty much wake up and i think how can i beat your and stuff and a thumbs up it’s just open heart so let me just say i appreciate each and every one of you that smash that thumbs up button
Cuz that’s what foot bills me nowadays okay that’s why fellas me okay all right guys so let’s get an objective one and two will cover both of these at the same time okay have i made money have i lost money in us oh and kind of what happened here today okay so what happened here today with uso is uso did an 8 to 1 split okay this is what’s called a reverse split so
Sometimes a regular stock split will happen and that’s essentially when a company’s share price is so high maybe they want to split it so for instance if amazon’s you know at two thousand dollars a share maybe amazon wants to bring their share price down so people can buy amazon shares for cheaper so they might do like a one to ten split where essentially everyone
Share you had before now you have ten shares but that’s going to be divided out by ten so now they’re worth $200 so it’s not like you made any money you lost any money it’s just the the shares are split now now you have 10 times more share but what uso did is what’s called a reverse split okay it was an 8 to 1 reverse split so which means if you had 8 shares before
The split you now have 1 share and if somebody just learning about stock market you might say oh my gosh that’s awful okay until you realize that your share is now worth eight times more okay so it’s just it’s just a wash sale in the end now after this would happen you know the sheriff can go up they can go down it’s the same thing obviously with any stock after
That period of time but in terms of the actual split you don’t lose any money you don’t make any money it all ends up being the exact same okay so there’s just a lot of confusion around that and i can understand you like a lot of people don’t i’ve never went through a reverse split or don’t really know about this too well okay so essentially here’s what happened
Okay i had five thousand two hundred shares of us oh i had bought yesterday my cost basis on those shares is ready around two dollars and thirteen cents roughly okay so let’s go ahead and do some math so i had five thousand two hundred shares before remember they did an eight to one split so now i only have six hundred and fifty shares okay i have 650 shares now
Might seem bad and tell you go ahead and calculate well it was worth two dollars and thirteen cents each share times that out by eight so now my share might will meet all 650 shares or were seventeen dollars in four cents each okay that’s my new real cost basis my new real cost basis on uso is right around seventeen dollars and four cents a share okay now here today
Little you know all the shares were trading at seventeen dollars and eighty-eight cents obviously the shares have traded all over 18 but let’s just go off of that what is trading out as of right now recording this video so seventeen dollars and eighty-eight cents okay so seventeen dollars and eighty-eight cents that’s what the shares are worth i have 650 shares
Which means essentially i have eleven thousand six hundred and twenty-two dollars in uso as of right now i could sell that out and right now and literally get eleven thousand six hundred and twenty-two dollars okay now what did i pay for those i paid around eleven thousand seventy two dollars or eleven thousand seventy six dollars i think it was eleven thousand
Seventy two dollars what i actually paid for those my cost basis okay go ahead and do the math on that i made roughly around five hundred and fifty bucks so if i sold out right now i will have profited around five hundred and fifty bucks okay not a hundred k no i did not lose money who knows maybe i will lose money on this trade over time but no i have not lost
Any money i have made money as of right now if i was to go ahead and take my profit and no i certainly did not make a hundred thousand dollars on this okay so hey you know i understand that’s not as fun to talk about some people want to see me lose money and some people want to see me make a ton of money and neither more most situations i just made a little money
As of right now which by the way five hundred plus dollars selling out for a five hundred plus you know plus dollar gain only eleven k investment in less than 24 hours like that’s that’s pretty freakin good okay i’m gonna be that’s like that’s pretty freakin good i mean if you can do that every day you don’t need to work another day in your life okay now that’s
Much harder to do then and then how it looks is put it that way okay no if you don’t if you still don’t understand the reverse stock split rewind the video watch that portion over again or go to like investopedia they have a really in-depth article on on reverse stock split so maybe if that’s a better way of learning and it’s not videos for you to understand how
You know the math works behind a reverse stock split go ahead and check out an article like that okay so now that we understand basically the reverse stock split if i’ve made any money as of yet or lost any money and kind of what’s going on there now we’re gonna talk about will i sell us oh am i thinking about maybe buying more u.s. so it has anything around my
Thoughts there changed okay now i could say hey i made 500 bucks in this or so let’s run let’s go ahead and sell out of this you know that’s definitely something i could say and i could understand if somebody out there bought us oh yesterday and they want to sell out and take the profit and run you know respect to you if that’s what you want to do that’s what you
Want to do okay for me nah okay i’m not i’m not in this to make 500 bucks and run out of this okay that’s not me in this situation okay obviously oil prices are up today probably why uso is up today okay oil prices across the board doesn’t matter what contracts you’re looking at everything’s up okay all the way from basically you know the the ford month which is
June all the way through you know 2021 every single contract is up today but the fact is here’s what the situation is with us so uso owns contract for july 2020 they own august 2020 contract they own september 2020 contracts they own october 2020 contracts they own december 2020 contracts and they own june 20 21 contracts okay and here’s how those splits go okay
Thirty percent of us owes money is in july 20 20 contracts okay 30 percent 15 percent is in august 20 2015 percent is in september 20 20 contract 15 percent is in october of 20 20 contracts another 15 percent is in december 20 20 contracts and 10% actually is in june 20 21 contracts and all that information is actually on their website you can go ahead and check
It out you can actually see the specific numbers that they bought the contracts at and kind of what they’re trading and by the way the contracts are all pretty much in the green now for us oh which is good news okay that’s the first piece of good news are you honestly you essos had for a long time once again i don’t know if i’ve gotten us old right at the bottom or
You know maybe it’s still gonna go down but you know if i didn’t get it at the bottom i’m gonna get a pretty thing close let’s put it that way okay so here’s what i don’t want to sell out a us so as of right now look at those prices guys oh you’ll for next month is trading that $19 a barrel all guess is trading at 22 september’s trading at 24 october’s trading at
25 even if you go out to next summer the prices are 30 31 dollars a barrel these are historic historically cheap prices okay keep in mind during the great recession at the lows a barrel oil started trading in the 30s okay and that was during the great recession that was a long time ago okay i don’t think this type of pricing is sustainable long term in my personal
Opinion maybe it is i just don’t see it so in my personal opinion here with us oh i believe it’s gonna go up over the next one to two years why because i believe oil will go up over the next one to two years i believe oil will likely have a nice bull run for the next one to two years maybe it goes up even after that but i believe the next one in two years i gotta be
Pretty pretty dang good for oil let’s put it that way i think with all the production cuts i think with the mass amounts of bankruptcies we’re gonna see from a lot of the oil exploration companies out there i think the fact that we’re gonna start having demand come on and eventually over time it will ramp more and more and demand will go higher and higher especially
If you compare it to now when economies are completely shut down right and so in my opinion it was gonna go up for the next one or two years if that happens you know what else is gonna go up a u.s. hos likely gonna go up k so i’m expecting to to x my money over the next one to two years in u.s. oh okay that’s what i’m expecting that’s what i’m going for that’s why
I’m risking this money i’m not risking this money to make five hundred bucks i’m not risking this money to make three percent on my money or five percent or eight percent or ten percent or even 20 percent i’m in this one to double my money over the next one to two years and hey maybe it doesn’t happen that’s why i’m taking limited risk in this one you guys saw when
I put in it i put it on an 11 k okay you know i think you guys know me pretty well like 11k is 11 canisters put it that way okay i’m taking limited risk with this one in the video i released yesterday i said my absolute limits my absolute limit for investing money into uso would be forty-four thousand dollars that’s my that’s my maxed out limit okay now when it
Comes to like a bigger stock position of mine it’s all that like those are always six-figure and up positions okay so for you know six figuring up positions in a stock 44k max in us so if i even get to those levels now obviously we were playing on different fields there and so i want to take limited risk and here’s the situation hey maybe it’s possible oil stays
At $10 to $30 range for the next two years and that just means you know it’s not a good situation for us oh i’ll likely lose money in it that would stink if oil stays in ten to thirty dollars for the next two years man that’s that’s gonna that’s gonna be horrible obviously for that position now you could say it could benefit the overall economy if oil was in $10
To $30 range for the next two years you could say you could benefit a ton of corporations that that you know use fuel products of some kind obviously you know they could benefit the airlines and heck even the cruise companies and things like that but at the end of the day i think i think it’s very unrealistic i think anybody that expects $10 to $30 barrels of oil
For the next two years i think you know just a good luck with that i don’t think that’s gonna happen i do not think that is the way that’s gonna play out so i’ll stay in this one open till i feel like i’ve made enough money in this one and it’s time to cash and i don’t look at it today is like oh my gosh i got a cash with a $500 profit or something like that i’m
In this one for the 2x opportunity and if it takes a year to get there if it takes two years to get there i am perfectly fine with that okay i’m perfectly fine with it and if we get there in three months hey you know what maybe it would be time to take some profits okay it is what it is obviously with a play like a uso there it’s a shorter-term play this isn’t like
You know one of these stocks i buy out there you know that i that i hold for years and years this is this is an oil etf this is this is a short-term play and i’ll sell it when i’ve made enough money and today’s not enough money is put that way guys so hope you enjoyed today’s video is always hope you learned a little bit about reverse stock splits how those work
Make sure you smash the thumbs up button and you know you know share this out with somebody if they’re confused about how this works all right thank you for watching and have a great day
Transcribed from video
USO is $18 Today! What Happened and Will I Sell now? By Financial Education
