Wednesday, April 23, 2008 1:46:00 PM
Pure speculation on this one from DUG.
I just purchased a "Long Call Spread" on DUG.
Buy May $29/Call @ $2.70
Sell May $30/Call @ $2.10
My new cost is $0.60 for the derivative of the two. DUG is the ultra short of the price of Oil. I'm not sold that oil can continue to just rise and rise in the short term. So I take the less risky approach and hedge a bet there.
I like these types for something like 20% gain in a few days. Let's see how she plays out.
Boca_Bobby
I just purchased a "Long Call Spread" on DUG.
Buy May $29/Call @ $2.70
Sell May $30/Call @ $2.10
My new cost is $0.60 for the derivative of the two. DUG is the ultra short of the price of Oil. I'm not sold that oil can continue to just rise and rise in the short term. So I take the less risky approach and hedge a bet there.
I like these types for something like 20% gain in a few days. Let's see how she plays out.
Boca_Bobby
Boca_Bobby
Mom said there would be days like this!
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