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Inverse Oil ETF Plunges 26%: What Gives?

Posted on April 09, 2008

Oil is trading up more than $3 today to $111.68. DCR is theMACROshares inverse oil note that trades on the AMEX. When oil goesup, DCR goes down. When oil goes down, DCR goes up. Today, however,DCR is down more than 26% even though oil is up just 3.12%. What gives?When DCR began trading back in November 2006, oil was trading ataround $60 per barrel. DCR trades along with UCR, which is theMACROshares oil up note. The net asset value [NAV] of UCR is thefront-month oil contract price divided by three. The NAV of DCR is $40minus the NAV of UCR....

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etf , oil , oil contract , trading