STO (2) Naked Put - UNG (Natural Gas ETF) July 09 @ $12 for $0.40 each. Net Premium $79.
This gives downside protection some where around natural gas futures trading at $3.20. In the $3.2 - $3.50 range there are alot of Natural Gas Producers that cannot produce gas profitably and would simply shut down their operations. I believe this gives good price supplort at the $3.00 - $3.20 range.
Risk Management:
Ticker: UNG
Expiratoin: 17-Jul-09
Invest Date 10-Jun-09
Current Stock Price $13.80
Strike Price $12.00
Premium $0.40
Annual Dividend $-
Days to Expiration 37
Return (Assumes CSP) 3.33%
Annualized Return 32.88%
Downside Protection 15.94%
Monthly Options Expiration Results through May 17th, 2024
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Each month after the monthly options expiration date, this summary report
provides the results on all positions that have been closed out during the
past m...
20 hours ago
Nice trade, I literally did the exact same thing except the covered call version for June.
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