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Monday, April 13, 2009

Getting Long Crude Oil Taking on a Vertical Call Spread Option

Today I opened a vertical spread option on UCO. I opened the position for the July expiration options. I bought the UCO 10 call and sold the UCO 12.50 call. I did this for $80 per spread contract. My price target by mid summer on crude is above $70 per barrel. I think the UCO should be well above $12.50 by July expiration which is why I got long this position today. Downside risk is $80 per contract and upside is $170 per contract. Sphere: Related Content

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