Morning Update – May 8, 2020

Well as usual, I’ve forgotten that most brokerages require margin account to trade options. This also usually requires $2000 minimum in the account to open/switch to a margin account. So my $1040 is not quite going to do it. Granted, Webull will allow buying of Calls and Puts with a cash account. They did come back and approve me for options, after a encouraging message, they also gave me real time options data for 1 month. I don’t feel the need for real time data on options since I’m going to place the order way in my favor and slowly creep it down until the order fills. Since I want to enter a covered call trade against DBO (yes, I still favor this trade), I have to apply for margin. This means I have to fund the account with more money.

I haven’t spent any of my “stimulus” money, shame on me. I’ll go ahead and send $1500 more to Webull and apply for a margin trading account. Next week I’ll be showing how I make the DBO trade within my Webull account. Please keep in mind this is for learning (and entertainment) purposes only. I’m not recommending this trade to anyone. I’m not an advisor of any kind, especially not financially. I still save far more money from working than money I make on the market.

As for gas, I did buy a little UNG at $13.65, way too soon. I knew it, I did it anyway… Since prices are now closer to a reasonable buy for June, it sure looks tempting to add. July does not appeal to me at $2.095/MMbtu. Granted that is dirt cheap for gas, but doesn’t mean anything if LNG exports are heading for the cliff. Storage is up and the market is trying to swing back to being over supplied. It’s a good situation to wait. I may decide to add late today, but right now I’m not so interested.

My positions:

UNG – 10% in at $13.65 – barf

DBO – waiting for margin and funds to enter covered call trade.

It’s Friday. I’m still excited I polished my account up to get into the green by a reasonable amount. No rush to lose it. LNG being a big topic right now, July could also fall to $1.85. Good luck, be patient