BP

papakong88

My comment assumes you do not have the calls. Your BP is only 24.5K with the covered calls and still sufficient to sell 5 puts (but I would only sell 2 or 3.)

WestBrink

What do you want BP to do about that? I guarantee they are pumping every single barrel they possibly can right now, doing their absolute damnedest to drive that price down.

werdnaztluhcs

Fixed BP pipe from tank farm to wharf and found they had a major leak that was spilling into the ground probably contaminating the ocean but got told to keep it on the downlow - fuck BP and there management.

godlessLlama

I was considering selling and piling in on a pullback after earnings but, I can take a huge hit on this and be fine for a while and make it our green. Will be building the BP for the next pullback to pile in. MSFT is still over 20% off ATH so leaps are on my list regardless of earnings

New-IncognitoWindow

People never started going to BP after the Gulf Spill. Pumps are always empty and every station attached is a liquor store.

Far-Operation-1580

I fucking hate BP. Scam company that scammed Irans oil for almost 100 years keeping most profits for themselves. Now they profiting even more from Iran

Butt_Stuff_Profile

Cool. HOWEVER, like I already stated....I paid $6.45/gal yesterday. BP has doubled their profits. If I have to pay more due to less supply, then BP should profit less. Am I taking crazy pills? You can talk business "judo" all you want. We are being gouged.

teddykaygeebee

Awesome job, BP. Everything is collapsing but at least you doubled your pprofits. They did it, everybody! Rejoice!! /s

Butt_Stuff_Profile

If I pay $6.45 a gallon and BP doubles their profits, someone is lying.

Ahamadrayasbaboon

A lot of people in this thread likely have no positions in BP, or anything.   I have no BP position, but I buy enough of everything else to know how a bid/ask market works. 

thetaFAANG

based BP: extracts oil at maximum profit from Iran democratically elected Head of State attempts to negotiate a bigger share of extraction BP says no to all Iran Democratically passes nationalization legislation BP gets British and US intelligence agencies to overthrow democratically elected leader and government of Iran BP gets more profits again Puppet government gets overthrown by hardline religious sect and subjugates everyone until now US finally attempts to overthrow Iran and this raises oil prices by 100% BP profits from global price gouging

WestBrink

What the actual fuck is happening in the BP thread? Since when is WSB opposed to companies making money? Fuck supply and demand I guess

Equivalent_Net_3752

The Gulf of “America” has been looking a little too clear recently. Thank god BP now has even more capital to rectify that.

WestBrink

I missed the part where BP was an OPEC member nation, good point.

S4T4NSDADDY

We have union guys being locked out at BP Amaco Refinery in Whiting IN cause they wanna cut 200 union jobs and slash pay for all existing jobs by about 6-7$ per job classification. They’re currently paying SCABS $127 an hour to show up n do the same work those guys were doing. When I say fuck BP I mean fuck all of the management for that company fuck the whole negotiating team and fuck all the scabs that are crossing that line

HotChicksPlayingBass

There’s a reason the BP (ButtPlug) logo looks like an anus.

Pitiful_Bedroom_6619

what happened to BP only up .8%

Totallycomputername

BP. Bitch please 

wmzula

Bers are gonna eat real soon. We are too euphoric. The sign for the top is when BP says they gonna diversify into AI...

Ok_Patient_2646

I see no one talk about Chevron or Exxon mobile. BP has their earnings and it was rlly good

lionkevin713

BP doubled profits since Iran war, in other words - “oil shortage” was just an excuse to price gouge lmao

Plane-Try-6522

Yes but also this is what I was saying: businesses and consumers are paying for higher prices for crude and crude derivatives. This is where BP's profits are coming from. And if businesses are paying higher prices and unable to pass these cost, then margins are likely to be squeeze which will be reflected in certain sectors and most likely in Q2 earnings.

mahend72

Strong numbers, but the context matters. BP didn’t suddenly become more efficient .. geopolitics lifted oil and gas prices. That kind of boost is fragile and can reverse quickly.

McKoijion

In a world of ceaseless volatility, it's nice to know some things never change. > BP profits more than double, beating expectations as Iran war boosts oil prices https://www.cnbc.com/2026/04/28/bp-q1-earnings-oil-energy.html > BP's origins date back to the founding of the Anglo-Persian Oil Company in 1909, established as a subsidiary of the Burmah Oil Company to exploit oil discoveries in Iran. In 1935, it became the Anglo-Iranian Oil Company and in 1954, adopted the name British Petroleum. https://en.wikipedia.org/wiki/BP

Provolone-Jones

I just want to make sure someone checks on him. His BP has to be way too high

No_Economist3815

Guys, I got $400 in BP. Need to turn it into $40,000, pronto. Thought?

papakong88

It depends on your strategy. Assuming you have a margin account with 100% stock. You will have 70% of the account value as buying power (BP) to sell options. Assuming you are selling naked OTM put options. The collateral required is usually 10 to 20% of the notional value. If it becomes ITM, the collateral required can increase to 40%. In the meantime, your account value is also dropping. Do you have enough BP to handle the increased collateral? If you know the answer to this question, then you will know your option/stock split.

Capta1n_Sully

You mean like Shell or BP? Astra Zeneca?

Cold_Ball_7670

Hey random I just found this thread days later lol - in respect to your former job and the adjacency to the oil and gas industry and the BP disaster- not saying it was predictable but wasn’t it sort of known the well inspections were not up to standard and therefore this was possible 

Bluebird-9641

Percent or BP?

Iamhappilyconfused

Guys guys I have an idea, oil and water don't mix right? So just dump all the oil in the gulf, and scoop it up at the Indian ocean. Problem fixed! We can even get BP to help us, they have prior experience with this sort of thing.

NoWeb2576

VM are BP puts are wise move considering uncertainty with Iran?

TheoryInttro

If everything pumps on the TACO OSEBX and OBX should tank. But if oil spot market doesn't buy the TACO, OBX is dominated by the oil giant Equinor (16%) and Aker BP (6%) so if Brent oil makes any sudden moves OBX could get spicy. In either direction.

bbmiscOG

What do you mean by 20 BP?

sac02052

200%. For a while I worked adjacent to the oil&gas industry and tried to pick individual stocks (XOM, BP, Chevron, etc.) . BP looked great, then the deepwater hoizon disaster hit and they tanked. You just can't predict which individual stock will have a disaster or miss expectations. From that point on it's been almost all ETFs for me.

papakong88

Let’s look at a 696/694 for tomorrow. You can sell it for 0.12. The 696 has a delta of 0.10. Now look at the 6985 strike of SPX which has a delta of 0.10 also. We can sell the 6985/6965 put spread for 1.075. Each PS will require 20 of BP. If we sell 10 SPY, we need 20 in BP and get 1.20. Or 120.  Assuming we pay 1.00 in fees per PS, the net is 110 for 10 SPY PS and 106.50 for 1 SPX PS. We could get more with 10 SPY but I would go with SPX for lower tax and cash settlement. (Note: I trade NDX instead of QQQ for these reasons.)

OptionsProOfficial

Yeah it’s annoying, but it’s basically them treating XSP/SPX calendars as “nice until they’re not.” If your net liq is under their new 15k/25k line they just flip the short leg to naked margin and nuke your BP, which is why people woke up to surprise calls. I’d assume any broker-level margin “benefit” on index spreads can disappear like this and size/calendar across brokers instead of building your whole strategy on one shop’s house rules.

PatentedSheep

That’s why I filled up a couple 55 gallon drums at the BP

sport912x

Do not do this at RH. First off they only allow Naked Puts as Csp and do not allow Naked Calls. Actually if a company is automatically paying you interest on idle Cash they probably are not an Option place. Fidelity will tell you they are but they cannot even figure out the BP which often results making everything a Csp. I know IB (hate the interface), Tos and Tasty all offer Naked selling. Tasty is the only place I have heard that will approve you for Selling Naked , by checking a box. The others have rules , mostly written by lawyers not traders. Sgov, Bil, Tbil, gets 75% Face at Tasty and IB (?), but only 70% face at Tos.

sport912x

You are confused. Selling a Naked Put in a Margin Account, approved for selling does not mean you do not have the cash available to take assignment, it just means you are only using 20% of the strike as BP . For example if you sell a 200 Strike Put you have to have 20k as a CSP , but in a margin account (approved for selling naked Puts) you would use under 4k Buying Power , which might be cash, or something like Sgov earning you a little interest.

sport912x

Cash nope. Why would you do that? The interest rate is about 4% and may be going up. So why ever do a CSP at least in a Margin account. Get approved for Selling Options . Keep the cash in something liquid like Sgov, Bill, Tbil, and get 75% Buying Power, or 98% for treasuries. For 2k-5k you can sell Options on Amzn, Appl,Googl, Coin,Bidu, Nvda , 8/9k Spy. I am talking 20 delta put , call or both . Of course if you have a thing and want to tie up your money in a stock with assignment, Sgov .. treasuries turn to cash with a click. If you think BP is Margin you have been misled. Watch these vids from the founders of Tos and Tasty. [https://www.tastylive.com/shows/best-practices/episodes/buying-power-reduction-01-26-2015](https://www.tastylive.com/shows/best-practices/episodes/buying-power-reduction-01-26-2015) [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 STOCKLESS TRADING [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020)

demi9od

This. Looks like about 20 short calls worth of BP. He might not even be down at all depending on when he sold them.

voodoo-ish

Hey... I know we do. But good luck wasting your time going that granular just to find out if that backs or not a claim and where are already safe decision paths and investment decisions to take that we have learnt from past crises. This is just another one of many. Like I told him, that's for the likes of journalists or political economists. Digging to see **how much of UAE oil is going into Tupperware sales on Amazon** to decide whether or not I should sell my Brent or BP papers is just......... Unusual to me. Even if I were to sell Tupperware, Whole Foods or whatever (not into retail, so don't know if these are actual stocks), it just seems like a wasted effort. This is why we research *before* we start investing in a specific area, not DURING a crisis. Studying for investing is different than fact-checking or learning something new. You get ideas of where to go in scenarios X, Y or Z, but you don't reach the nitty-gritty depths of databases of every drill out there. It's nuts. Especially now with AI-driven research. You study hard before you decide to go on big oil, and that's it.

voodoo-ish

Hi, Mars. How's it going? I appreciate you asking me my take on this. I do have. I tend to have a lot of takes and opinions on the oil industry hahahaha guess I'm one of the few people who aren't ashamed of saying they're very interested in the market and invest heavy in it (I still believe in oil for several reasons, but we can get to it later). And you were spot on. We *are* all talking about slightly different things, and it drives me absolutely mental when I see the financial press bleeding these concepts together. You have to mentally separate the *catalyst* from the *affected actor t*o navigate this space without losing your shirt. There are macro geopolitical events (Hormuz closing, sanctions), consumer trends (EV transitions), and company-specific facts (mergers, refinery outages). But a headline about "oil prices surging" affects an upstream driller, a downstream refinery, and a shipping logistics firm in completely different ways. The news rarely isolates these phenomena, but as investors, we absolutely must. Now, regarding that massive disconnect you noticed... You aren't going mad; it *is* wild, but there is a structural explanation for it. In commodities, what you’re looking at is an extreme state of *backwardation.* The *spot price* at $150 is the physical market. It measures immediate, visceral desperation. It reflects the exact logistical capacity, shipping bottlenecks, and supply chain constraints of getting a literal, physical barrel of oil to a buyer *today.* Now, the futures price at a $110 is the paper market. Futures are essentially the market trying to measure the "temperature" of where things will settle. At $110, the market is pricing in the probability that either the geopolitical crisis will be resolved within weeks, or that $150 oil will trigger severe "demand destruction" (meaning the price gets so high that factories shut down and consumers stop driving, inevitably crashing the price back down). I believe this is the reflection of the current talks being carried in Lebanon and about Iran. These Middle East wars/crises nowadays tend to be short AF. To quote Kristen Wiig: "This is the 90's. It's civil rights". To use an economic analogy, it's a bit like looking at inflation versus base rates. Spot prices show you what things actually cost right now on the high street; the base rate (futures) is the lever anticipating where the economy is heading next. As a medium-to-long-term investor, this is exactly why I am highly critical of playing the futures market based on geopolitics. From a pure data science and statistical modelling perspective, trying to predict futures right now is deeply flawed. You cannot build a robust statistical model on the unpredictable psychology of global leaders. It creates a massive feedback loop—or "reflexivity"—where the market is just pricing its own panic. I’d happily use futures to model something with quantifiable variables—like the environmental cleanup timeline of a pipeline leak, or something like the BP Deepwater Horizon spill, where we have hard data on rig sizes and current water flows. But playing futures on Middle Eastern geopolitics? That’s basically playing roulette. When I studied the Gulf War oil spikes, it was a classic trap. Everyone celebrated when the Western coalition stepped in, and paper markets priced in a swift victory, dropping the price of crude. What they *didn't* model was Saddam Hussein maliciously setting the Kuwaiti oil fields ablaze as he retreated, destroying the infrastructure for years. I leave the short-term speculation to the day traders. I’m much more interested in the physical infrastructure, geography, and proven reserves of the companies I back. Brilliant question, by the way. It sounds like you're doing some serious academic-level digging into market mechanics. Are you studying economics, or just a deeply curious retail investor? I’m always keen to chat about energy markets—feel free to drop me a DM or we can connect on Discord if you ever want to bounce ideas around. Cheers!

frogboyjr

Most brokers let you sell calls? The BP requirements are usually quite high though

live4failure

I have a 90% win rate this month. Perfect win streak all month until last week and I didn't use a stop loss and blew 30% of my account. Since last week I am back up to even but sold calls or puts too early and missed out on like 2000%-4000% gains on various stocks. Im all cash exhausting full BP everyday, usually 5-10% of account per trade. I probably could give you the approximate dollar amount for some hard learned lessons. Legit lost $1k from no stop loss in 3 trades, Im sick but my rules are becoming engrained in me now.

PimpCforlife

BP is the gayest company ever. up the whole year, then i buy calls and it starts going down. fucking redcoats

NckyDC

They are terrorists because Churchill made a coup against the democracy that wanted to give the oil to the poeple but Churchill (and the amercians) thought otherwise and instyalled their regime so they could control the oil with BP. History man... History

_Fibbles_

BP? Shell? Never heard of them. And what even are the North Sea oil fields anyway?

Wolfreak76

Fuck yes! During the BP Horizon disaster I was thinking something similar - just let the oil pour into the gulf and harvest it from the surface, and also BP could bill people for whatever amount of BP's oil landed on people's shorelines.

Mug_of_coffee

> Also the broker should show BP as you create the trade (Tasty , Tos do this, and I think IB Yes, IBKR too.

Traditional-Koala927

It backfires if you're sick. But the daughter of a rockstar and the heiress to Shell Mex and BP wrote that.

GoodIntroduction6344

Yeah, but what was it before taking BP medication?

Investingforlife

BP

Icy_Jelly_315

Um, yes? My BP is up 17% on the month

papakong88

You are right. I used more BP but I don't think the risk is increased.. I sold only 2 X 25HTE 23000 PS and at 8:35 I sold 28X23060. I added a lot of 30 Junk in the afternoon. I normally don’t do that. This is extra BP but I have more than one lot that is deader than a doornail. I used extra BP but I don’t consider it as extra risk.

Academic_Banana_5659

Ironically BP

kaapooj

>An aviation notice issued Saturday said that “due to limited fuel availability from Air BP Italia, refueling services for operators contractually linked to Air BP Italia may be subject to restrictions.” The affected airports are Bologna, Milan Linate, Treviso and Venice. https://www.politico.eu/article/italy-airport-jet-fuel-restriction/

Investingforlife

Yeah, partly (BP).

papakong88

The option price at any time incorporates all the effects of the Greeks. The EM reflects the expected move of the market at that time so we must use the current EM. As you have noticed, EM decreases so what you sold when the EM is high will have a higher OTM. For the 25HTE, you must use the next day’s EM. (If you sell on Friday, you must use Monday’s EM.) The reserve is used to generate income to lower the cost of an exit. If it is judged that an exit is unlikely, then the reserve BP can be used to sell junk. You can sell junk at any time. I want to sell them before 10 CT because I have to go to the gym. Junks are like the icing on the cake. The only criteria is that you must feel good (and safe). My regular price for a PS is 1.00 and 30 cents for CS. Junks are 0.50 and 0.20 or less. I have sold junks for 10 cents as late as 2 pm CT.

sailortyx56

BP Italia has warned airlines at four Italian airports that it may be forced to ration its jet fuel supply due to shortages caused by the Iran War. Ambulance flights, state flights, and flights lasting more than three hours will be prioritized until at least April 9th. [](https://x.com/Osinttechnical/status/2040537135338406113/photo/1) [Link](https://www.ansa.it/sito/notizie/economia/2026/04/04/allarme-carburante-sui-voli-restrizioni-in-4-scali-italiani_f17f98ae-bc4c-4016-9d4c-3db14f4031c8.html) Shit is gonna get crazy by the end of April.

0o0o0o0o0o0z

NAE man! You must be unAmerican -- we can totally do this, we are the best, of the best, of the best... look what we did in Iraq!!!! Look, it only took us 20 years to lose Afghanistan with no materiel change... It's not like our action literally birthed ISIS... I mean, for sure, all these problems can be traced back to a US-led coup for BP and other oil interests to overthrow the democratically elected Iranian government and install a west-boot-licking Shaw, right...?

wrongrobertpatrick

I bought 300 shares of BP on Friday

Mediocre_Pangolin572

On Monday morning my BP calls will go to the moon and I will finally leave this subreddit.

Academic_Banana_5659

I mean these companies somewhat create the future by themselves by forward thinking and investing anyway so it is a self fulfilling gamble I guess. A safe bet. Even so as I said BP were well positioned no matter the scenario. They evolved themselves from an oil company to an energy company.

wrongrobertpatrick

I loaded up on NTR, IPI, CF, OXY, BP, SHEL, BPR, VG

papakong88

You will not have a margin call in case of a market meltdown due to this strategy. However, you can have one if you do not use margin correctly. My margin requirement is predetermined and will not change no matter what the market condition is. However, the available collateral (or BP) changes. Therefore, if we have enough BP for our worst case, then we will never have a margin call. This concept is not unique. The golden rule for trading is to use only a portion of your account. The rest is your fat for the cold days. I have plenty of fat from profit to cover a max loss.

Academic_Banana_5659

Not 100% He said BP had a 50 year plan for oil and what they were going to do if oil struggles to survive, they were going to invest in "limited oil dependent energy production" wind farms, solar, hybrid energy, sea energy, nuclear energy, biomass energy etc. If Oil didn't become obsolete then they would go for lubrication, Oil recycling, oil reprocessing, plastic recycling and reprocessing. Then if things get really bad and oils dies completely (unlikely) Alternative fuels, alternative materials, battery development, Etc It was a really intriguing lecture. How these companies have the future panned out. If America has an obesity crisis, chances are companies have already prepared for it because innovation takes potentially decades so you have to be decades ahead to strike to first blow.

uncleBu

Is it literally impossible for you to get margin called on the worst series of events imaginable given the scenario you are painting? From what I am reading, it seems that there is heavy correlation in your trading stages, so even if you deem the risk to be "low" you might get nicked twice on 2/3 of your BP, which will already put you in margin call territory if you are using any leverage whatsoever. If that is the case then my point above stands, long term view is not what happens in two years, but what would happen in the worst case scenario that we know will happen at some point. And yes, I do trade like the world is always going to collapse, mostly because I know that at some point it will, like the other times that it happened.

papakong88

Both days were about a 300 point rise in about 10 minutes. Note that currently the EM is very high. It is about 180 in the first hour. ICs sold during this time should at least be 500 points OTM, so they should be ok. My exit strategy is to prepare for exit when OTM becomes less than 80 and close if it is less than 50. Then reopen the position later (if conditions are favorable) and to sell another one with the reserve BP. This will reduce the loss. My options were never less than 80 in OTM (see my post below).

papakong88

I reserve part of my BP for use in lessening the impact of a bad situation. For example, when I have to close out a position for a loss. I can establish another position(s) with the freed up BP and the reserve BP. During the day, if I judge that my positions are safe and the reserve is not needed, I would sell ”Junk” with the reserve. I call them Junk because they have no value.

Kbarbs4421

I wrote itm covered calls against a portion of my BP position, with a Sept expiration date.

papakong88

These are my transactions last Thursday. Spreads are 100 points wide. Total gain = 24,800. Required BP = 1.8 M. One of my best days this year. |Time|Short strike|Strategy||Premium|Status| |:-|:-|:-|:-|:-|:-| |3:15 Wed|24825|25HTE|Call|0.30|Expired| |3:15 Wed|23000|25HTE|Put|1.00|Expired| |8:35|23060|0DTE|Put|1.00|Expired| |9:10|23030|0DTE|Put|1.00|Expired| |9:15|24390|0DTE|Call|0.30|Expired| |9:33|24475|Junk|Call|0.25|Expired| |9:48|23080|Junk|Put|0.50|Expired| |1:13|23600|Junk|Put|0.60|Expired| |1:22|24240|Junk|Call|0.25|Expired|

Total_Schedule591

BP joined the chat

Academic_Banana_5659

I was at a university lecture from a BP representative and they pretty much said oil will never run out because innovation will outpace it's consumption. We don't recycle oil effectively because we don't need to ...but if we did then ... He also said oil will continue to be sold in smaller quantities at higher costs for lubrication purposes and previously financially unviable oil fields will be drilled when the price increases to a rate which justifys the cost. Interesting that the best time to drill for oil is when it's at its cheapest but that's not the right time to sell oil. Hence why all these oil producing countries are limiting production whilst costs are high and getting rid of stock.

MooseLipps

Don't forget the massive Equinor/BP "Bay Du Nord" offshore oil project that Newfoundland is looking to move forward asap... https://www.gov.nl.ca/releases/2026/exec/0303n05/ Pretty good chance that Kraken will be involved in that and its a multi decade and multi billion dollar project. Of course nothing is guaranteed but Kraken has so many tailwinds like oil exploration and defence (including Anduril as a customer) along with massive expansion of their battery plants and acquisition of the Covelya Group... the growth potential is just insane.

ARSC_RexH

still think buying XOM and BP calls was the right choice but wish I had waited until now to do so instead of 45 minutes ago.

Mediocre_Pangolin572

My BP calls were completely fucked and now they are printing holy Jesus resurrected them from the dead.

Legitimate-Fig-21

It took 4 days from start to finish. You also left out the “why” because BP, Standard Oil of New Jersey (now ExxonMobil), Standard Oil of California (Chevron), Socony-Vacuum (Mobil), Gulf Oil, and Texaco did not want Iran to nationalize their oil.

Stock_Cost5631

Venture Global (VG), the second biggest US energy company specialised in LNG that will surpass Cherniere within 2-4 years.The comoany faced some lawsuit due to prioritising selling LNG on spot market instead of long-term customers, when the plaquemines weren’t ready. The companies suing either lost or settled with exception to BP. Anyways the 2026 should be good and the company is almost ready with these cases. Before the company listed in 2025 the IPO price was initially estimated to be around 40-50USD, due to the lawsuit the IPO was 25 USD. It has dropped more then but is now recovering well

wrongrobertpatrick

Full ported today: OXY, BP, SHEL, PBR, DVN, VG, NEXT, BATL, TALO

wrongrobertpatrick

They are gonna dump and funnel back into USO, OXY, VLO, CVX, BP, SHEL

Ash_Skiller

first off, take a breath. you just started meds and they need a few weeks to really kick in. the fact that you're already monitoring at home and logging is huge, docs love that data. focus on one lifestyle change at a time, dont try to overhaul everything overnight or you'll burn out. once things stabilize some people layer in BP360 from BloodPressureSupport. com alongside their regimen.

sport912x

Nope and that is the rub. It was assigned the day BEFORE. So you are selling your Sgov on T+1. So when it is Posted at say 4am it is already T+1 and your Sgov is not cash that day. Your Sgov sale at 7am will not be T+1 until the next day . This is happening now since everyone selling options knows they can use the Sgov as BP and still get interest. 10 years ago most of us just kept the cash as cash since interest was so low. My cash in my margin account is usually under 1k while well over 100k of BP.

papakong88

When you sell CSP, Fidelity requires you to have a cash equivalent as collateral. (assuming you are approved for CSP only.) Cash equivalents are cash, money market funds, T-bonds of less than 1 year in maturity. Money market funds used as collateral will earn interest. When you sell naked puts, you can use buying power as collateral. Most of your securities have BP. For example, SGOV has 70%, money market has 100% and Treasuries of less than 1 year have 97%. Money market funds used as collateral will not earn interest.  When you have a margin account, you can buy securities with a loan from your broker.  Say you want to buy $1000 of XYZ. You will find from the website that there is an initial margin requirement of 50% and maintenance requirement of 30%. (This is typical. Some stocks are higher.) That means you must have 50% or $500 of BP as collateral to buy. After purchase, the collateral is reduced to 30% or $300. The difference between what you owe and the BP is a loan. For Treasurys, the initial requirement is 10% and the maintenance is 3%. That means you can buy it with 10% but you will have a huge loan. I use Treasuries in my account instead of keeping SPAXX. SPAXX will not earn interest if it is used as collateral to trade options.

False_Mulberry8601

I bought BP in September 2021 at 310p (currently 606p) and it gives me a 9% yield!! I'm selling on 6 April (new tax year) as I have some very expensive art to buy!!

Curious-Visual4525

I have equinor and Aker BP 40/40% and the rest 20% is in equinox gold. Not sure what to buy in 1-4 weeks i don't want to hold the oil for to long really.

creemeeseason

Sold the last of my April Hormuz hedges (BP), getting closer to expiration and downside risk is rising there. Still have May LYB calls, which I think is cheap regardless of the strait status. Might grab June ADM or LNG if they sell off some.

Personal_Repair_3579

Checked out BP in a cash flow tool out of curiosity . FCF yield is solid at \~8.9%, but they're paying out 85% of it to shareholders. Leaves almost nothing for debt or reinvestment. Margins are also lagging peers across the board. The whole thesis basically needs oil to cooperate. If Brent softens, that payout ratio gets uncomfortable fast. At 70% up I'd probably trim a bit tbh. Not a disaster, just not cheap anymore.

sport912x

I know and have done it from time to time, and if things get squirrel it is an option. Just prefer the ease of going from Sgov to cash right on the platform. Anyhow I am no where neat my BP at any point, so for now do not bother. I have not been assigned since 2010 , but recently I found out that assignment is a problem in a no cash account like mine. Assignment takes place that night after the close and that is T+0, so by the time it is posted to your account it is T+1 and even selling your Sgov at that moment you still will have one day of interest. Back in 2010 everything was cash since interest was so tiny. It took an hour to find someone on the trade desk to explain this, the guy before this was trying to tell me that assignment took place the instance the other user exercised on the platform (yes if at 10am then you were assigned). So beware of what moron picks up the phone at Schwab.

MortgageRegular2509

Exxon, BP, Chevron, Shell… I know these names better than I know my own grandmother’s

Any_Jicama5208

I'd care less about being up 70% and more about what BP earns if oil cools off. If you'd still want the stock with Brent back in the 70s, hold it. If the thesis really needs hot oil + buybacks, trimming here is reasonable.

sport912x

The info is good, but if you think it will help you trade you are wrong. It was written during Open Outcry , and basically it was about Options on Futures. Written way before the current wave of customers being able to create their own trades. Will have nothing about Option Buying Power , since his audience was brokers on the floor, and they had unlimited BP (until caught at the end of the day).

Wooshsplash

BP.LSE. Bought at 495, currently 608. This is an interesting one. Setting an alert for 700 and, possibly, dumping at that price or holding for long-term. Undecided. Though right now this is compensating for my MU, which is driving me nuts.

ExpressMud8038

I got rejected for an internship at BP last month.

papakong88

Using SGOV is smart because the value does not change much. If you do a lot of option trading, it is better to have T-bills where the value does not change much but the BP is around 97%.

papakong88

You want to sell 1 naked MSFT put. Your broker will require collateral (commonly called the margin). Your broker will not loan you money for collateral so you will not pay any interest. However, you can use stocks as collateral. Assuming your account is at Schwab. Your 258 shares of MSFT is worth 92K and 70% of it (called the buying power) can be used as collateral. Let’s say you want to sell a 340 put, the collateral required is around 5K. The collateral changes based on the stock price and option price. If the stock price drops to 340, the collateral becomes around 7K or more. If the put is assigned, then you must pay for it from your own money supplemented by a loan if necessary. Then you pay 11% (annual rate) in margin interest. You have the BP to sell 1 naked put and enough to meet the additional collateral if the stock price drops. Go for it!

Affectionate_Age752

The Saudis funded 9/11, not Iran. The USA is completely to blame for the regime in Iran, after they backed a POS for decades, they installed after a CIA backed coup against a democratically elected leader, who wanted to see BP's accounting for the oil they were taking. Abs BP didn't like that.

schilleger0420

Doesn't make enough money. If Exxon or BP could make more putting up wind farms and solar panels you'd see fields of them.

Mr_ThrowAwayJohnson

Bruhhhh, why on a Friday during work hours. Decent spot though next to BP.