UCO Covered Call or SCO Naked Put

March 4, 2011 in Daily Outlook

UCO, ProShares Ultra DJ-UBS Crude Oil (currently trading at $55.25), covered call July $35 strike would collect $20.80 and cover loss down to $34.45. If UCO is called away it would an effective sell at $55.80. SCO, ProShares UltraShort DJ-UBS Crude Oi ETF (currently trading at $43.60), naked put July $65 strike would collect $22.90 and be an effective buy in at $42.10.