Let’s Take our Triple-Digit Percentage Oil Profits
When you receive this alert. sell to close the United States Oil ETF (USO) Oct. 21 $10 calls (USO161021C00010000), which last traded at 75 cents, and buy to close the USO Oct. 21 $8.50 puts (USO161021P00008500), which last were offered at 17 cents.
We arrive at a triple-digit percentage overall gain on the two options as follows. Our initial investment is $0.24, obtained by subtracting $0.56 to buy the calls from the $0.32 call premium we collected from selling the puts. Our gain is $0.75 minus $0.17, equaling $0.58.
We are leaving some scraps on the table, we are willing to take a triple-digit percentage profit and look to redeploy. Watch for more details about our rationale tomorrow during our normally scheduled ETF Trader’s Edge.
Sincerely,
Doug and Tom
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
