Monday, May 4, 2009

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. 


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