Morning Thoughts – Oldinvestor

Not much has changed. I don’t have any updates. I want to say powerburn is weak compared to CDDs, but this doesn’t seem to be true looking at comparisons at RonHenergy.com

last 6 weeks of CDD+HDD vs Power Burn

In fact, the last 6 weeks comparison to previous years, powerburn is stronger than ever. Industrial is an easy target here. Industrial consumption continues to be weak and weather isn’t going to make much difference. So much for making a quick scrutiny argument…

Being that little has changed in the market, I’m still waiting for a new low in prices or signs of LNG recovery. Platts had an article yesterday, they think recovery is “on the horizon”. We’ll see. They make mention of September LNG export cancellations being common knowledge next week.

My positions

UNL – Gonna change how I say this – 80% of my max comfort in with an average of $7.4 and waiting

BOIL and KOLD – short 100 shares each and short 1 put each.

BOIL and KOLD covered puts as of market close 7/13/20

I’m starting to see a little pain with both of my covered put positions. BOIL is technically ahead, but since I am the only person interested in 90 strike puts of BOIL, the bid/ask spread isn’t ideal. Good thing I’m in this trade for long term.

I’ll be sure to share these two position at market open, as long as I am nearby. Good Luck

Oldinvestor

BOIL and KOLD covered puts at market open 7/14/20