I bought 500 shares of DUG at $43.50 and sold 5 October $43 strikes for $4.30 to rake in about $2150. This represents a 10% return in 30 days till October expiry if I don’t get called and 9% if I do get called.. I’ve watched UYG and with AIG going under (a big component of UYG), I decided it wasn’t worth the risk for me. Russia is in a total panic and has just cut their oil tax to try to raise revenue.
I think oil will drop over the next 30 days and this will impact O&G companies negatively which is why I went short Oil & Gas. I hope to be called on DUG but anything can happen, even a rally in Oil & Gas.
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