The shares on Friday closed at 16.92, up from a recent low of 13. If you want to get in at the current level but afraid of a pullback, buy shares and hedge them with June strike 13 calls at 4.10/contract. That should give you an .18share in intrinsic time value. But since natural gas is on uptrend stick, I would consider strike15 and higher. Strike 15 pays you 1.58/share in intrinsic time value. A pullback to 15 from the current levels is a reasonable hedge. For every 1000 shares, you can earn 1580.00 in premium.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha
community. Instablog posts are not selected, edited or screened by Seeking Alpha editors,
in contrast to contributors' articles.
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.
What would happen to UNG if natural gas explodes to the upside? 0 comments
The shares on Friday closed at 16.92, up from a recent low of 13. If you want to get in at the current level but afraid of a pullback, buy shares and hedge them with June strike 13 calls at 4.10/contract. That should give you an .18share in intrinsic time value. But since natural gas is on uptrend stick, I would consider strike15 and higher. Strike 15 pays you 1.58/share in intrinsic time value. A pullback to 15 from the current levels is a reasonable hedge. For every 1000 shares, you can earn 1580.00 in premium.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
Share this Instablog
Latest Followers
StockTalks
-
Market technicals: I'm accumulating both QID and DXD as the DOW and nasdaq look tired. We have not been able to surpass 10479.
Dec 23, 2009
-
Amln: today's pullback is a great entry hedged by writing Jan 12.50 calls. Last week's results of Byetta far exceeded epxectations.
Dec 23, 2009
-
QID: added more to my core position at 20.48. Nasdaq is topping out and is tiring.
Dec 11, 2009
More »Latest Comments
Most Commented
Posts by Themes