I picked up 600 shares of DUG @ $51.80 in my Arbitrage account and sold 6 November $51 contracts @ $9.00 to rake in about $5,400. This will be an 18% return if I’m NOT called and 17% return if I am called. I sold in-the-money because I don’t want to be left holding the bag here but I don’t think oil will rally significantly over the next few weeks. If it does my OIH holdings in my Power Account will make some profits for me hopefully! This is a phenominal premium with about 4 weeks left till options expiry!
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