[quote=stockstradr]Start your dollar-cost-averaging into a long position on crude oil….
Personally, I’m going with “UCO” this round
“UCO” seeks to replicate, net of expenses, twice the daily performance of the Dow Jones AIG Crude Oil Sub-Index.
[/quote]
Stocktradr,
I think I am one of those who provide you entertainment with my cluelessness. I do wish you answered my previous questions about how to long oil. I went to the http://www.djindexes.com/aig/index.cfm?go=home and understand conceptually that this index uses “rolling” of future contracts to calculate the value. How does a fund like “UCO” invest in the index? It sounds like the fund would sell contracts about to expire or hold them until payout, and continuously buy futures (say three months out for example). So the delta between the last two matured or sold contract is your potential profit or loss that gets accumulated correct? But how doe it “replicate, net of expenses, twice the daily performance of the Dow Jones AIG Crude Oil Sub-Index” I just went to the UCO website http://www.proshares.com/funds/uco.html but have yet to read all the literature, but would appreciate an explanation. It sounds a bit like “black magic” to be able to double an index, any index.
