Why does UCR have much less volume then USO, and why does it trade at a substantial discount to its NAV? I'm looking at it because it has an 8.45% discount to it's NAV, but I haven't traded closed end funds so I don't have any sense as to whether this discount will close quickly or if it will persist. Is long UCR short USO a layup, or am I missing something?
I posted a few links on another thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=124414&highlight=dcr The main problem is the issue of "what if oil goes above $120" If you are long UCR, you don't participate, and if you are short DCR, the stock can't fall below zero.