UPRO Covered Call - Too gd to be tru? Please advise

Quote from iggy9807:

I'll go out on a limb and say that this will probably be a losing trade considering the "cliff" and current overall complacency in the market.
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The covered call part of the trade resolves in the next 10 days, we shall see...
 
Quote from Cereal:
----$5 "gift cards" ?
----Give me your email address....
----I will send you a thank you....
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This is too much "trouble". Toss some money into a Salvation Army pail instead. :cool:
 
Quote from Cereal:

The covered call part of the trade resolves in the next 10 days, we shall see...
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It reminded me going long some stock in 2007 that was going to be acquired in about a month at 5% above the current market price. I think I lost close to 20% after they extended the offer deadline and the stock started sliding. Eventually there was no acquisition.

It would be worse if you made money this time. Then you'd think all you have to do is to buy the right stock/ETF/option and just pick up a check at the end. (I mean that's true but it's never easy).
 
Quote from iggy9807:

It reminded me going long some stock in 2007 that was going to be acquired in about a month at 5% above the current market price. I think I lost close to 20% after they extended the offer deadline and the stock started sliding. Eventually there was no acquisition.

It would be worse if you made money this time. Then you'd think all you have to do is to buy the right stock/ETF/option and just pick up a check at the end. (I mean that's true but it's never easy).
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No, it's never easy, that's for sure.
But you have to agree that buying a 3X sp500 ETF in December is not the worst of trade probabilities. Nor is selling a covered call with only 10 days left for expiry.
 
Final Result [of a perfect trade]
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UPRO closed at 89.04 on Friday 21st Dec
Was assigned and thus gave stock to buyer of call.

Calculation of Result:
- $8704 Initial investment in 100 Stock (86.99 per share + commission)
+ $ 143.47 Rcvd for sale of covered call Strike 89 expiry Dec12
+ 8884.80 Rcvd for assignment on stock (8900 - 15.20 commission)
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+ 324.27 Ttl gain (3.72% over initial invested amount)


Now, who said Santa Claus doesn't exist?

:p
 
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