Zeev's Turnips Patch-No Politics (ZEEV)

[connor26]

Hi Lee: I have a question if you have a minute. I am interested in UCO. Oil down 20% recently, and down more tonight (at this writing). How does the value of this decrease due to the nature of the vehicle it is? Say oil stayed at $80 a barrel for 3 months, i believe UCO would go down weekly (monthly?) as the underlying securities in this roll over. Is it just the trading costs that accounts for the decrease? Any idea how to figure out how much $ wise UCO would drop weekly or monthly using the scenario oil remains at $80 for 3 months? I've heard this is not a vehicle to hold longer term, but don't know what constitutes long term. Thanks, Dan