Tuesday, June 23, 2009

NG roll over

Today, I rolled over NG from July to Aug.

Sold 3 July NG at 3.863
Bought 3 Aug NG at 3.988

I'm still holding 1 July 4.5 Call, 1 July 5 Call and 3.5 July put. Tradestation wants me to roll over out right contracts today, or they will be liquidated even though they are covered call positions, which is very stupid. If for some reason, NG skyrockets, and I get assigned on those calls, I have to sell it again and pay additional commissions instead of simply letting them offset by futures long.

I'm not happy with them for sure. What's more interesting is, their clearing firm is RJ O'Brien, but RJO lets you hold it until expiration day instead of 3 trading days prior. Often times, the very next month value goes down significantly in the last three days of the front month expiration, which I could have benefited if TS let me hold.

Anyway, I'm looking for selling calls if we do have any bounce. NG chart pattern looks good, but price just doesn't follow. Too many people are long UNG (nat gas ETF) and maybe that's why we can't rally.

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