Below you will find a chart that shows why every single UCO (oil ultra ETF) straddle or strangle bought this options expiration month was profitable. It shows you the prices paid for calls or puts at well-defined regions of the chart, with prices that represent local peaks and valleys. Every point between a peak and a valley would haver had a better or an in-between ROI
Actual results were posted on this blog throughout the month.
The charts shows IWM on top of each column, the calls for strikes 6, 7.50, and 9 on the left column, and the corresponding puts on the right column.
(please click to enlarge)
The chart hows the percentage increase only for one side of the straddle/strangle. The other side would still have some residual value left. Returns were also quite significant on some points. The last week is always the one to avoid, as it is too risky, but still some positions were profitable then.
Friday, March 20, 2009
Why UCO Straddles Were Profitable
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2009
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March
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- Investing in FAS and FAZ
- UCO Straddles Update
- Gold, Silver, Miner Straddles
- Natural Gas Investments
- Options Comparison: 2X ETF Versus Underlying
- Yahoo and Sandisk Straddles
- Hedge Funds Managers Pay in 2008
- Straddles March 25
- Straddles for the Week March 23-27
- Interview with the President of Itau-Unibanco, Bra...
- Investing in Sound Banks
- Max Pain for March: Busted Again
- Why UCO Straddles Were Profitable
- The Mother Ship
- Straddle Play for Tomorrow
- UCO Straddles Update
- Max Pain for March and Straddles Update
- Straddles Update March 17
- Correlation Between Oil, Gas and Gold Stocks
- Straddles for the Week March 16-20
- Friday the 13th Update
- Straddles Update March 12
- New UCO Strangle; All UCO Straddles Profitable
- UCO and USO, Prices Taking a Beating, USO Rollover...
- Straddles Update March 11 AM
- Straddles for The Week March 9-13
- USO Rollover of Oil Contracts Starts Today
- New Straddles
- 100% of UCO Straddles Bought at Equidistant Strike...
- NewGold (NGD) Acquires Western Goldfields (WGI)
- Straddles Update
- An Options Play: Profit From High Near-Term Volati...
- Updated March Straddles
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March
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