Replies to post #924 on ProShares Ultra Bloomberg Crude Oil 2X ETF (UCO)

[kamakiri]

I think it's hard to boil it down to finite actions. I still think trading the subsequent action correctly is key.

My example shows a 'free ride' without the continuing cap to the upside. If it just tanked after entering the position, you could just dump both sides or roll the puts down. Or just let it ride if you are confident that prices will linger under the call side strike thru expiry.

IOW, lots of ways to play.