Ok, for example - Brent averages US$78/bbl between July & December 2015.
So, if the hedge is for 400,000 bbls for that period with a ceiling of US$68/bbl, does this mean SXY could miss out on potential US$10/bbl on 400,000 bbls = US$4m??
If it's that simple, not good situation IMO.
I could be missing something here in the T&C's of their Hedge.....
Still, as I have said before, I'm holding as the company is very good. Could just be a rushed decision which may not turn out favourable in the short term
SXY Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held