Investors in ProShares Ultra Bloomberg Crude Oil (UCO) have seen new options for September 2027 begin trading on October 1, 2023. Two notable contracts are a put option at a $51.00 strike price, currently with a bid of $9.30, and a call option at a $58.00 strike price, with a bid of $9.90. The distance to expiration is 353 days, allowing for potentially higher premiums due to time value.
The $51.00 put represents a 3% discount to the current trading price of $52.49, with a 67% chance of expiring worthless. If this occurs, the premium would yield an 18.24% return, or 18.86% annualized, for investors committing to buy at that strike price. For the $58.00 call, there’s a 41% chance it will expire worthless, granting investors the premium while retaining their shares, potentially leading to an 18.86% return, or 19.50% annualized.
Implied volatility for the put is 67%, while the call has an implied volatility of 65%. The trailing twelve-month volatility stands at 62%, based on the last 251 trading days. These options may represent strategic opportunities for traders looking to leverage UCO’s performance.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
