The UCO 5-7.50 and 6-6- straddles I have been posting are already profitable today, in spite of the move having been only a fraction of the maximum move required. As discussed, this is because there are still many days to options expiration (see our new gadget on the top right corner).
The March 6 calls are worth $2+ (bought for $0.90), the March 7.50 calls are trading for $1 (bought for $0.40-$0.50). The March 6 puts still worth $0.20.
And UCO is still rising.
This is from late February:
More straddles will be uploaded later.
Readers know my position on 2X and 3X ETFs. I recommend nobody should buy UCO straight. Use straddles, beat them at their own game.
Thursday, February 26, 2009
Posted by The Shocked Investor at 10:03 AM
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