2024-04-08 10:43:20 ET
Summary
- ProShares Ultra Bloomberg Crude Oil ETF is discussed as an investment option at its current market price.
- UCO is a high-risk, high-reward investment suitable for short-term trades only.
- I suggest taking profit and adopting a more neutral stance on UCO due to the recent gains and potential for volatility in the crude oil market.
Main Thesis & Background
The purpose of this article is to discuss the ProShares Ultra Bloomberg Crude Oil ETF ( UCO ) as an investment option at its current market price. UCO is a double long instrument, designed to return two times the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index. This is a futures market product, so it may not directly follow the current price of crude, but I personally feel it is as good a way as any to access the oil market....
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For further details see:
UCO: After The Run-Up, I'm Limiting My Expectations (Rating Downgrade)