While watching the German flash crash yesterday I wanted a quick way to make a profit on a bounce off the lows. I chose oil on the basis that there is global demand support for the oil price so if the flash crash turned out to be something more sustained I would at least have a position that would find some support.
To make this trade I chose the leveraged ETF DIG. I bought at 39.30 and sold today at 40.35 for a profit of 101 dollars after costs.
The oil price is towards the top end of the range it has trade within for the past two weeks. If the flash crash had happened while it was lower in the range I would have committed more money and held on for longer, as it is my reason for entering the trade has passed and I will have to be happy with the 101 dollar profit.