svosavvy

Investing in Natural Gas: It's Time

You could buy a canroy and buy the long out put. A nice relatively low risk play for some nat gas exposure as long as you don't mind crude exposure too. I am thinking like a pvx going for 5.15 right now you can probably get the march 5 put for like 65 cents for a total cost of 5.80 . If you are a US resident your dividend is like a nickel times 7 collections before march for a proceed of 35 cents to you, I just don't see these guys cutting that thing anymore. Anyway you could put your 35 cents toward that 65 cents you bought the put for, and if you were really cheap you could sell the march 7.5 call for a dime to only be out 20 cents but you would put a real collar on your upside for only a dime gain. Then if your theory that now is the time to buy is right you have some exposure, and if your theory is wrong you are out very little. long pvx

Options Trader: Monday Outlook

two words for this market... Indian Summer don't forget to pack a sweater.