Add UCO Calls
Playing an Oil Pop
PLAY: Buy the UCO April 7.5 Calls (UCO DU) at or under $1.90, good for the day. Place a protective stop limit at $0.90 and a pre-determined sniper sell at $3.90.
Dear Bottarelli Research Member,
Earlier this week, we hit a nice gain playing calls on the UltraShort Oil & Gas ProShares (DUG).Now, I’m thinking that we take the opposite side of this trade by using the Ultra DJ-AIG Crude Oil ProShares (UCO).
Opposite to how the DUG moves, the UCO corresponds to twice the daily performance of the Dow Jones AIG Crude Oil Sub-Index. The secret here is that not many investors are aware of the UCO, since it just began trading last December. This factor, combined with the drop in crude oil prices, explains why the UCO is currently trading for only $8.17. Chart below:
With such reduced prices, all we need is a one- or two-day pop in oil prices, and the ultra-long leverage contained within the super-cheap UCO levels could hand us a powerful winner. From an oil price standpoint, you better believe that OPEC and Russia are not happy with oil prices at such reduced levels, so I wouldn’t be surprised to get a classic “oil price shock” very soon. Therefore, let’s carefully add UCO April 7.5 Calls to our ledger under $2.00 and see if we can ride an upcoming jump in oil prices. Here’s the trade…
PLAY: Buy the UCO April 7.5 Calls (UCO DU) at or under $1.90, good for the day. Place a protective stop limit at $0.90 and a pre-determined sniper sell at $3.90.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.
Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.
Take FLR Profits
Add AZO & V Puts
Add to AEM Calls
Correction: Add to AEM Calls
A Dangerous Time
Take TBT Profits!
Afternoon Update
Kicking Off The Stimulus Debate
Three New Plays
Add TBT Puts
Take TBT Profits!
Markets Crumble: Take QID Profits!
Add FDX Puts
Add DUG Calls
Take AEM Profits!
Take DUG Profits!
Another Dangerous Formation
Add TBT Calls
Add UCO Calls
Take FDX Profits
Take TBT Profits!
Two New Plays
Add GS Puts
Watching QID
No Guts, No Glory
Take GS Profits!
It’s “Wait and See” Time
Add TBT Calls
Good News, Bad News
A New Low?
Take QID Profits!
Take GS Profits
One Final Trade
Add PCP Puts
Add KSS Puts
Dow Under 7,000?
Take NEM Profits!
Add CMG Calls
Add QID Calls
Add TBT Calls
Take TBT Profits!
An Aggressive Maneuver
Add TBT Calls
Take QID & PCP Profits!
Add DXD Calls
Take DXD Profits!
