Turning to the calls side of the option chain, the call contract at the $30.00 strike price has a current bid of $1.55. If an investor was to purchase shares of SCO stock at the current price level of $29.65/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $30.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.41% if the stock gets called away at the November 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SCO shares really soar, which is why looking at the trailing twelve month trading history for Proshares UltraShort DJ-UBS Crude Oil, as well as studying the business fundamentals becomes important. Below is a chart showing SCO's trailing twelve month trading history, with the $30.00 strike highlighted in red:
First Week Of November 16th Options Trading For Proshares UltraShort DJ-UBS Crude Oil (SCO)
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