I placed an order to sell Feb 2.5 put for 0.153. Yesterday NG dropped to 2.43 and the puts was about 0.13-0.14. Of course, what happened was that it got very close and bounced since. Today, NG reached as high as 2.54, which would have been a nice $1000 to lower my break-even.
I don't see today's uptick as a real bounce. It's a mild profit taking. It might go up a bit more, but usually it'll have another move down, at which it can form a lower low, higher low or double-bottom. The latter twos are the best scenarios for me, but even with those, NG will likely stay at this level very very long time.
I'm hoping it bounces about 0.1 to 0.2 so that I can sell calls to lower my break-even. Otherwise, I'll need a lot of patience.
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I bought 500 shares of UNG yesterday at $5.49. I think it can actually go all the way down to the $4.80 area, but I think we'll see a nice change of momentum soon.
Again, Feb is historically a strong month for Natty Gas, and we are making new lows. I just need to make sure I scale in and don't buy all at once, or get too scared to buy here.
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