UCOProShares Ultra Bloomberg Crude Oil
UCO Fund Description
The ProShares Ultra Bloomberg Crude Oil ETF provides 2x the daily return of an index of futures contracts of WTI crude.
UCO Factset Analytics Insight
UCO seeks double the return of its futures-based index on a daily basis—reflecting both the returns due to price changes on WTI futures contracts as well as any return (positive or negative) from “rolling” those futures contracts. As a geared product, UCO is designed for a one-day holding period; it’s not appropriate for buy-and-hold investors. Daily compounding can lead to the fund’s returns varying significantly from those of the index over holding periods of greater than one day. UCO is a solid choice for a leveraged energy play. Its strong volume and narrow spreads at all levels mean investors large and small have little trouble getting in and out quickly and cheaply. UCO’s expense ratio isn’t cheap, but trading costs are more important here.
UCO CHARTS AND PERFORMANCE
UCO Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of UCO. UCO is rated a 5 out of 5.
Options Strategies for Outcome Investing
Options allow you to customize investment outcomes. Using the strategy builders provided by Cboe Vest Technologies, you can construct some of the most common option strategies. Check out our user guide for more information on how to use the tool.
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.