Marco Hickey

Time to Get Long Black Gold? How Option Spreads Can Pay Off

So have you traded out of this yet? As of today I traded out of a few of the contracts for a 396% gain.


On May 12 03:12 PM CoverIsBetter wrote:

> Hickey, is that a bar in your picture background? Please tell me
> you weren't drinking while writing this recommendation.
>
> I am all aboard this 35/40 spread for USO. See you at $5.00 on the
> spread.

Fuel Your Portfolio with These Option Strategies

Thanks for the comment! The dividend is not included in the return. However, sometimes the options market prices that in and may not change the premium too much. I am calculating the return as if I purchased the stock as of June 2, 2009 close, and sold the Call immediately for the Theo value.


On Jun 03 10:31 AM berloe wrote:

> Are dividends included in % returns?

Fuel Your Portfolio with These Option Strategies

Hey thanks for the comment! Options probability is derived from the Black-Scholes option pricing model. Although a rather complicated calculation, once you get it down is simple. However most brokerages have probabilities available either with an options calculator or something called a "delta" value.


On Jun 03 07:44 AM Jay Mooney wrote:

> What methodology was used to calculate the probability?
>
> - Jay Mooney

Time to Get Long Black Gold? How Option Spreads Can Pay Off

HAHA! It's refreshing to see some humor for once on these comments.

As for long roh's comment you are right. I debated using UCO as an example but the premiums on the ETF's are so juicy they are hard to resist. With $55 to the downside and if crude does take off the ETF should pay off in the shorter term (3 months).

I actually just published an article about how dangerous these leveraged ETF's are check it out at: optionmaestro.blogspot...


On May 12 03:12 PM CoverIsBetter wrote:

> Hickey, is that a bar in your picture background? Please tell me
> you weren't drinking while writing this recommendation.
>
> I am all aboard this 35/40 spread for USO. See you at $5.00 on the
> spread.

Time to Get Long Black Gold? How Option Spreads Can Pay Off

Not trying to boast about it, and my SUV's are not dinosaurs... I just remember last summer a lot of people complaining about the price of gasoline, however I did not complain at all, as I implemented this strategy. I was making more $ from my "hedge" than the extra $ spent on gas. I know I am not the only person with a gas guzzler, so other people with gas guzzling cars may find this article helpful.. That is if they're worried about gas prices rising in the near future, and can risk the $.


On May 12 10:15 AM CO2 wrote:

> Thanks for the contemporary USO>UCO strategy. As far as your boast
> of owning a couple gas guzzling dinosaurs, I'd suggest getting in
> line for the government's cash-for-clunkers program, too.

Time to Get Long Black Gold? How Option Spreads Can Pay Off

You're right not horrific at all... Just trying to "spice" up the article though... :)


On May 12 11:09 AM bjc wrote:

> Since when is 150 points a "horrific stock market sell-off"? Get
> real.