Trade Alert - (UNG) February 6, 2014
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
Trade- (UNG)
Sell the United States Natural Gas Fund (UNG) July, 2014 $23 puts at $1.90 or best
Closing Trade
2-6-2014
expiration date: July 18, 2014
Portfolio weighting: 5%
Number of contracts = 30 contracts
Boy, am I in ?take the money and run mood.?
I am going to use the smaller than expected drawdown in natural gas supplies reported this morning on the 60 cent dump in profits to take profits on the United States Natural Gas Fund (UNG) July, 2014 $23 puts.
The lesson of last week is that when the markets present you with a gift, like pushing the prices of these puts up to $2.40 last week, you take it. I don?t need to be told twice. Such is the nature of the natural gas contract.
There is nothing more refreshing than being 100% in cash.
Sell 30 X July 23 puts at????????????????.$1.90
Profit: $1.90 - $1.68 = $0.22
($0.22 X 30 X 100) = $660, or 0.66% for the notional $100,000 model portfolio.
