UBS AG ETRACS Crude Oil Shares Covered Call ETNs due April 24, 2037 (USOI)
UBS AG ETRACS Crude Oil Shares Covered Call ETNs due April 24, 2037 operates in the Asset Management - Leveraged industry of the Financial Services sector, headquartered in New York, NY, US. The stock last traded at $44.46, down 1.24% on the session, giving a market capitalisation of $311.8M. Its beta of 1.00 implies it has historically moved less than the broad market.
USOI presents a distinctive strategy within the crude oil market, aiming to generate revenue from its holdings in oil futures. This Exchange Traded Note mirrors the performance of USO, a widely recognized ETF tracking front-month oil contracts, while simultaneously taking a synthetic short position in USO call options. These options are structured to expire the following month with strike prices set 6% above the current market value. This particular strategy is designed to boost income and reduce price volatility compared to simply holding USO, but it inherently limits the potential for substantial upside gains. Consequently, USOI's performance is anticipated to diverge significantly from that of direct crude oil futures. In line with typical ETN characteristics, USOI intends to distribute its generated income to investors on a monthly basis.
UBS AG ETRACS Crude Oil Shares Covered Call ETNs due April 24, 2037 is most often compared with the following Financial Services names: