ProShares Ultra Bloomberg Crude Oil (UCO) options for the September 2027 expiration began trading today. With 353 days to expiration, the longer-dated contracts offer sellers of puts and calls the chance to collect a higher premium than shorter-dated alternatives. The YieldBoost formula at Stock Options Channel has scanned the UCO chain and highlighted one put and one call contract worth a closer look.
The $51.00 put is bid at $9.30. Selling that put obligates you to buy UCO at $51.00, but you pocket the premium, lowering your cost basis to $41.70 (excluding commissions). For anyone already looking to own the stock, that is an attractive alternative to the current $52.49 quote.
Because the $51.00 strike sits about 3% below the current price (out-of-the-money), there is a chance the put expires worthless. Analytical data indicate a 67% probability of that outcome. Stock Options Channel will track those odds over time and publish a chart on the contract detail page. If the put expires worthless, the premium represents an 18.24% return on cash, or 18.86% annualized—the YieldBoost.
Chart below shows UCO’s trailing twelve-month trading history, with the $51.00 strike highlighted in green:
On the call side, the $58.00 contract is bid at $9.90. Buying UCO at $52.49 and selling a covered call at $58.00 commits you to sell at that strike. The premium collected boosts the total return to 29.36% if the stock is called away at expiration (excluding dividends). If UCO rallies sharply, you forgo some upside, which is why reviewing the trailing twelve-month history and fundamentals matters. Chart below highlights the $58.00 strike in red:
The $58.00 strike is roughly 10% above the current price (out-of-the-money), so the covered call could expire worthless, allowing you to keep the stock and the premium. Analytical data show a 41% chance of that happening. Stock Options Channel will track odds and publish charts on the contract detail page. If the call expires worthless, the premium adds 18.86% to the return, or 19.50% annualized—again the YieldBoost.
The put’s implied volatility is 67%, the call’s is 65%. The actual trailing twelve-month volatility based on the last 251 trading days and today’s $52.49 price is 62%.