12.3 C
New York
Friday, April 19, 2024

Top Trades for Thu, 07 Dec 2017 10:18 – UNG

phil
-
0
Top Trades for Thu, 07 Dec 2017 10:18 – UNG
psw-placeholder

Just because we cashed out, doesn't mean we don't have any more trade ideas.  This one is fun:

UNG/Den – GMTA!  If you want to play UNG here ($5.55) instead of /NGV8 at $2.80, I'd go this way:

  • Buy 50 UNG 2020 $4 calls for $2.05 ($10,250)
  • Sell 50 UNG 2019 $5 calls for $1.25 ($6,250)
  • Sell 25 UNG 2020 $5 puts for 0.70 ($1,750) 

That's net $2,250 on the $5,000 spread but you have a year to roll the short calls so hopefully a $10,000 spread if all goes well (the 2020 $6 cals are $1) and worst case is owning 2,500 UNG at $5 + $500 ($13,000).   If we had a portfolio, I'd put this in it!  

Nasdaq still failing 6,300.

Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither PSW Investments, LLC d/b/a PhilStockWorld (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Contact us: support@philstockworld.com

© Copyright - PSW, LLC.

2024