Halfin,

I initially started brokering with Lind-Waldock.  Then Refco purchased them, then Refco went bankrupt and The MAN GROUP purchased them, and decided on naming them Lind-Waldock once again.  I pay $60/round turn for each contract traded.  I've been pressured and have caved to buying close in contracts, but just keep in mind that brokers are salesmen, nothing more.  They don't know the market or your strategy.  Stick with your strategy, and if you are upfront with your strategy with your broker, they won't harass you everyday.  However, when first opening your account, you may want to say that you trade quite a bit, so you get a better trading rate.

Also, you have a great chance of losing everything whether you do options or not.  Even if you are long only one contract, every dollar fluctuation in the market represents $1,000 of your money.  It's actually possible to buy crude-minis, which represent just $500 of your money, but those are only for the close-in months.  You can buy a contract for as little as $10,000, but if the price goes down just $5, they'll liquidate your account and you're screwed.  You need to make sure you have enough wiggle room, and that's why I'm only long 1 or 2 contracts, so I can afford it if it goes down 5 or even 10 dollars.

Philip

SOme US E&P's are, in my view, a better investment than futures. Several will do very well at $50 oil, so don't depend on higher prices, and a few are growing both production and reserves. I suggest gmxr, ard and gpor, in that order. (All three doubled net income 3q/2q, but gpor took a hit from Rita that will cut production drastically 4q, should be back very strong 1q06.) I expect all will at least double next year.  I have a lot in the first two, will be back into gpor next spring.