Investors in ProShares Ultra Bloomberg Crude Oil (UCO) can now access new options expiring in June 2027, with 449 days remaining. Notably, a put contract at a $38.00 strike price has a current bid of $9.20, allowing sellers to commit to purchasing shares at this price for an effective cost basis of $28.80, presenting a potential 24.21% return on cash commitment if it expires worthless, with a 68% probability of this outcome.
On the call side, a contract at a $40.00 strike price offers a current bid of $9.60 and represents a 5% premium over the current trading price of $38.27. If shares are bought and the call sold, investors could see a 29.61% total return, while there’s a 35% chance this contract may expire worthless, allowing for retention of both shares and premium collected, translating into a 25.08% additional return.
Implied volatility for the put contract stands at 74%, while the call contract is at 69%, compared to a trailing twelve-month actual volatility of 57%.
