Morning Thoughts – Oldinvestor

LNG demand is at a new 3 month high. I wouldn’t mind buying some more UNL. What I have my eye on is CQP (Cheniere Energy). They are the biggest LNG exporter, and they appear to know what they hell they are doing. They’ve capitalized on their contracts that require their long term buyers to keep them afloat amidst the Whuflu panic. If CQP continues to be half as smart as they’ve been thus far, they should be a good long term buy.

CQP daily chart at Webull
LNG exports daily at RonHenergy.com

RSI is priming up for what may be a turn. I would say it’s a bit too soon for a technical comeback for CQP. For good reason, I shouldn’t rush into this trade. RSI is showing oversold, but CQP had dropped below 200MA and is still going. The last thing, I didn’t draw is a slightly up-sloping trend line from May to now that the price is about to reach for potential support. I would think CQP is about to reach support and I plan to keep an eye on this.

One more thing about Cheniere is they have two symbols associated with their company. LNG is the other symbol. LNG is for Cheniere Eneregy Inc. and CQP is for Cheniere Energy Partners LP. Both are listed on the NYSE. CQP has an annual dividend yield right now of almost 7.5%, and LNG has nothing.

Webull is telling me that CQP can only be liquidated, new positions cannot be taken. I don’t know what this is about. I have not heard anything that would deter me from buying CQP. Even if they did delist, I could just switch to LNG, but I would rather hold CQP for the high rate dividend. I’ll try again later, when the market is open. Maybe I’ll just add to UNL instead.

UNL – 50% holdings for now from $7.4

BOIL covered puts have improved drastically

Covered puts as of market close 9/8/20

I really am lost as for where the market is headed. It seems production continues to be weak and LNG is now back to growing, and fast. It may be a gift to go long, or I’m missing something. And I have a call. I’ll be looking to by some CQP, and maybe something with options later. Check back Good Luck

Oldinvestor

Update:

I’ve entered a covered call in SLB in Webull. Webull recently allows cash accounts to be converted to margin accounts. So I upped my amount in this account to meet the minimum of $2000 to trade on margin. I am approved to sell covered calls, and maybe covered puts. I can short equities, so I might even short BOIL/KOLD/LABU/LABD or even UNG. This is very cool. I do not have enough money to short BOIL to do a a covered put, but i wouldn’t want to without major money to cover the position. Plus the interest rate is astronomical in Webull for shorting a Hard to Borrow stock/ETF. LIke 8.63% vs 3.75% in Schwab… Don’t short shares of BOIL in Webull, it’s not economical.

So the trade I went with today was buying 100 shares of SLB and selling 1 call ( 18.5Call for 10/9/20 expiration) I’ll put this on my list to track. And my reason for a covered call with SLB is I believe in SLB, but believe it will be a slow recovery for them. I”ve been selling covered calls against shares of SLB for a number of months now and it’s been working great. This will change eventually, but right now I believe it is still the correct path for SLB.