Friday, September 2, 2011

Give another day

I'm looking to sell Nat gas puts. I was looking at 3.75 puts for $1530 a few days ago. I think it got to $1400ish and NG went up. Today NG tanked, but 3.75 puts was no where like a few days ago because when NG went up, the premium evaporated very quickly if this makes sense. Over lunch our, I placed an order to sell $4 put for $2030, but then with the sharp up and down in 2 days, I decided to wait out. I think what will likely happen is to test the low or even lower, consolidate before it goes up. I might get 3.75 puts above $1500.

On the other hand, I'm so close to sell Gold and buy Platinum at the same time as a spread. I think Gold might test the high just to see if they can run any stops and scare people away. I'll take advantage of this move and create liquidity for them. It maybe when Gold goes between 1950 and 2050. After that I think it'll crash as a typical inverted V format followed by a looong stagnation.

I'm also looking to sell Corn and buy Wheat at the same time. I think the current level is good, but I think there's still more upside to go for corn. I'd like to execute this trade when corn is likely to go down.

As far as indexes go, I think it'll test the low, but what do I know.

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