The automated Quantcha Trade Ideas Service has detected a promising
UCO was recently trading at $21.53 and has an implied volatility of 55.60% for this period. Based on an analysis of the options available for UCO expiring on 21-Jul-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $15.34-$30.64 at expiration. In this scenario, the average linear return for the trade would be 10.08%.
Moneyness: These options are currently 16.09% out of the money and there is a 33.66% likelihood that these options will be exercised before or at expiration.
Most upside: If PROSHARES ULTRA BLOOMBERG CRUD closes at or above $25.00, this trade could return up to 25.38%. Based on our analysis, there is a 34.01% likelihood of this return.
The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 40.46% chance the underlying will close at or below its breakeven price of $19.94, resulting in a net loss on the trade.
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This is an automated post generated based on a market analysis of delayed data at 2/28/2017 12:22:57 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.