During the recent explosion in Oil prices, which may or may not be over, blue chip stocks that were affected positively were essentially canceled out by the stocks disrupted in a negative way.

There are tons of ways in which traders and investors exploit changes in the perception of supply and demand in energy, commodity and currency prices. With respect to Oil, traders may simply buy the futures contact itself, light sweet New York Crude for any number of months out. Or they may play the Gasoline, heating Oil or natural gas markets.

Often, investors will buy or sell shares of an ETF, or Exchange Traded Fund that is heavily weighted in the Oil, or Gold sector to prevent the risk of investing in only a few exploration, mining or manufacturing companies.

They may also further attempt to enhance their profits by using their investment in Jet Fuel to borrow shares of an Airline, to use an obvious example, and selling them short at the same time.

Sure, you can open up a new futures account, or buy Exxon Mobil on margin, but in the main stream world of investing, it will take a very large amount of capital and a good deal of time and risk to capitalize on a Ten Dollar move in a barrel of Oil or a Twenty Five Dollar move in the Price of Gold.

This is where Penny Stocks come in.