DUG Options Crazy

I’ve been keeping an eye on DUG this week and the option premiums are crazy.  Warning:  This stock has been swinging wildly $8 to $12+ more daily and is highly correlated to the price of oil.   With OPEC meeting later this week it’s anyone’s guess what will happen with this ETF.    When oil goes up, DUG goes DOWN and when oil goes down, DUG goes up.   The in-the-money options are trading at $7 which is a 15% return in under 5 weeks till November expiry.    I’m tempted to purchase 700 shares and sell the calls to rake in $4900 but I’ll wait until OPEC meets or I have more information on where oil is heading.


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