Wednesday, March 17, 2010

Profit From Oil Going Up or Down

Oil investories will be released this morning. Here are straddles for March (2 days from now!).



As usual, UCO is the better bet since it moves 2X in relation to USO and is very close to a strike price. The maximum moves shown above are computed with StraddlesCalc Tool.

Here are the same straddles for April:



Please do your own due diligence. This is not advice. Options are very dangerous and may cause 100% loss.
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3 comments:

  1. CrashMarch 17, 2010 at 11:09 AM

    The first spreadsheet does not make much sense to me.

    How can the $13 UCO Put, expiring Friday, be worth $2.55 when UCO is $12.81? 19c intrinsic value and more than $2- for two days of time value?

    The "current" prices, as... currently (not when the straddle was put on) are out to lunch. USO is about $40- not $8. UCO is about $13- not $135.

    ReplyDelete
  2. The Shocked InvestorMarch 17, 2010 at 11:48 AM

    Hi Crash,

    I think you were looking at an extra column, which is the column I use for results. There are no results yet. Sorry, I have deleted the column.

    ReplyDelete
  3. CrashMarch 17, 2010 at 1:46 PM

    That makes sense - I was trying to figure out when the position was put (mooted) on.

    Thanks for correcting the diagram.

    ReplyDelete