Sold 1 Dec NG 3.5 Put for 0.84 ($840) less commissions
About 9 days till expiration, it's currently slightly in the money. I like the fact that NG is beaten down a lot with no sign of any support (isn't it contrary to selling puts??). I plan on selling if it gets to 3.25 and 3 level as well. Margin on full size NG is pretty low compared to a few years ago, so that helps.
I'm willing to get assigned and if so, I'll try to roll over to the next month and sell calls right away (covered call). I'm not trying to make a fortune here. I'll try to make about $1-2K.
2 comments:
F me, I covered my UNG short a week before it dropped 15%. Anyways, I guess I will wait for a long entry now, as I do think that we are nearing a bottom here. The Stock Almanac says that natural gas normally does well beginning in February, so that's when I'll be looking for an entry....
Man, that sucks. NG seems to be a free fall now. Plus Nov is typically a very bearish month. I also hear long CL and short NG trade related to MF Global bankruptcy.
I don't see a bottoming pattern yet. Hopefully soon.
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