With regards to the UCO straddles posted yesterday, here are the results.
(please click to enlarge)
On Thursday, UCO traded between $9.35 and $10..10 On Friday, it suffered very large swings and it oscillated between $9 and $10.80 (approximately a 20% swing!). The chart shows two exit strategies, one returning +41% and +25% profit.
Buying UCO may be considered akin to straight gambling, and as posted here a fewtimes, 2X ETFs retuns huge profits for the issuers of the ETFs, but this is another way that a normal small investor can profit by taking advantage of the tremendous volatility of UCO.
Straddles are also great as oil can go anywhere, down or up, and the investor can still profit. It does not matter which way oil price goes.
Note that these options still offer relatively low liquidity, and note that there were two weeks to expiration.
Saturday, February 7, 2009
UCO Straddle Results
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February
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- Paul Volcker's Speech In Toronto
- Stay Away from 2X ETFs, Cause and Effect Relations...
- Don't Buy USO or USL, Buy UGA Instead
- UCO Straddles: Proof of Concept
- Mitsubishi Shifts Production from Japan to Brazil,...
- Unemployment in the USA From 2007 to 2009
- Job Market for 2009
- Protect Yourself: Straddles for March
- February Max Pain Update, Demystifying MaxPain
- President Barack Obama Visits Canada
- Update on USO and March Oil Contracts
- SPY and IWM Options Action Today, Max Pain in Prac...
- Buyers of USO Beware
- Max Pain for February, Price Convergence Watch
- Correlation of the Dow 30 Stocks
- UCO Straddles for This Week and March
- Snow Artists, Protectionism, and Obama Visits Canada
- World's Oil Production: Top Consumers and Producer...
- Updated UCO and USO Straddles
- Results for UCO, USO, UNG Straddles
- Straddles for Oil and Natural Gas, USO, UCO, UNG
- Oil Consumption To Drop to Lowest Levels in 27 Years
- Straddles for February 9 and 10
- The Tale of USO, USL and Contango.
- AKAM, AMZN and WY Straddles Analysis
- Ice Artists
- UCO Straddle Results
- Catedral Bar Offers Madoff drinks
- Straddles for Tomorrow Friday
- UCO Straddles for February and March
- The DJIA, DOW 30... or is it the DOW 15? A Skewed ...
- SunLife Insurance Straddles
- Straddles for the Week of February 2 to February 6
- Straddles Report for the Week of January 26 to Jan...
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