Morning Thoughts – Oldinvestor

BOIL and KOLD covered puts as of close 7/30/20
Profit/Loss of BOIL and KOLD covered puts as of 7/30/20

I don’t have much to comment on today. I’m waiting to see if the market will pull back some here. As a reminder I did reduce UNL by 20%, now putting me 60% in UNL.

Weather is showing weakness in the forecast for once. LNG still seems to be on its way. Production is in question, but has the ability to increase. My hope is to see one more dip before winter influence and a decent LNG recovery. If there is another dip, I’ll do my to be patient and try to get in UNL below $7.5. Maybe even go all-in. I do think the market could move sideways or even go up. I don’t really know what to expect with LNG. We know that LNG exports will increase, but will production increase to meet the need? Will export facilities start ramping up demand early to fill their tanks? The timing is very unknown to me. I just know I want to be on the long side of this and leave room to add if there is a dip. I’ll be content if I don’t get any more UNL and it somehow goes up from here. For now I’ll be patient. Good Luck