I was wondering - do you think you could make more money buying 2018 $20 call options at around $700 each contact, or just putting the $700 in UWTI? I was trying to find out which would give a better return if oil did swing up relatively fast. I remember last December 1st, UCO would have been $87.20 (adj for split), so if it got back to that level (hypothetical) a $20 call would be around $6700 (I know I'm not taking into account VIX, just hypothetical) and Dec 1st UWTI was at $110.80 (adj for split) so $700/7 = 100 shares x $110.80 is $11K.
I know these numbers are rough, but I just wandered if anyone else was doing this and had any ideas.
Serious replies please. Thanks!