UCO Straddles for May

Oil is down significantly today, USO rollover is s till a safe 2+ weeks away, and UCO is trading exactly at $7.50, at a perfect spot for straddles and strangles.

Oil as of 10:15AM:




Here are UCO May straddles and strangles and that maximum moves required computed with our StraddlesCalc tool:

7.50:



6-9:



Note that the OI on the 6 puts is still quite low.

With 25 days left to expiration, the actual move required will be much lower than the maximum as there will be value left on the wrong leg of the straddle even after a good move.