NG Update

The following June options I wrote expired worthless:

3.5 Put for 0.305 ($3050)

4.25 Call for 0.111 ($1110)

The profit was $4160.

NG rollover

Sold 3 Jun NG at 3.638

Bought 3 Jul NG at 3.763 

Sold 1 NG 5 Jul Call for 0.207 or $2070

Nat gas kept on going, which almost seems too straight. I was expecting some sort of pullback or consolidation, but wow, simply amazing. Accordingly, I sold 1 Jul 5 call for 0.207 or $2070 creating yet another covered call. This will be my final leg, so My max gain is now locked. But I think we might see some pullbacks, so it could be a good time to sell calls. 

My 3.5 June put (sold for $3050) is getting close to worthless. Calls are really becoming inflated. You can sell 6 july call for $700 ish with only 6 weeks to go. I think that's simply crazy. But wait and see. If NG keeps going, you can do the same with probably 7-8 calls. I'm almost attempted to sell a naked call, but that's something I never do especially with nat gas. It can move 10-20K in a matter of few days. 

As for Jun 4.25 calls, if it goes in the money too deep, then I'll probably just get out of both underlying and options to free some margin.

LB rollover

I rolled over from May to July contract

Sold 1 NG 4.25 June Call for 0.111

NG pulled back yesterday but rallying again today. I sold 1 June 4.25 Call for 0.111 or $1110 creating yet another covered call. The strategy is the same. If it goes above 4.25 by 5/26, I'll get offset with 1 long futures. If not, it'll help me on carrying cost. 

So far I have 2 covered call positions. I still have 1 more available. I'll probably let this one ride a bit more or I can sell 4.75-5 Call for $2000+. 

Sold 1 NG 4.5 Jul Call for 0.158

NG is moving higher, so I sold 1 July 4.5 Call for 0.158 or $1580 creating a covered call.  The fun part of my position trading strategy starts when I can sell call options. 

I'm currently holding 3 long futures outright, 1 Jun 3.5 put option and 1 Jul 4.5 call. If NG keeps moving higher, I can exit the Jun 3.5 early (currently +1900). I also plan on selling more calls at either higher premium or higher strike price. If NG turns around and drop, then the $1580 premium I brought will offset the carrying cost bringing the break-even point. 

The July options have still about 50 days to go, so I have to sit on it for quite some time.