Black Friday in December for tanker investors

How to bet on tanker cycle with LEAPS calls

Schumpeter over Malthus, creative destruction over commodities deficit, and bits over atoms.

These have been the leading market mantras for the last several years, and 2024 did not disappoint in that regard. Tech stocks, questionable start-ups, and apparent frauds are again hot.

Old-economy businesses are left in the dark corners of the market—at least, this is the perception of the mainstream media and everyday investors. Some asset-heavy businesses gain double-digit FCF yields while trading at absurdly low valuations. So, it's time to talk about floating steel in its most classic form: crude tanker.

150 years ago, Ludvig Nobel commissioned the first tanker, Zoroaster. Since then, tankers have been synonymous with shipping and wealth. Think about Onassis. He amassed the largest tanker fleet and became the wealthiest man.

Crude tankers, especially the VLCC, are the most attractive shipping segments and subsegments. They offer the best fundamentals:

• Supply: single-digit order book, aging …