Morning Thoughts – Oldinvestor

My mind in being swallowed up with wiring harnesses and electronics for automotive gauges… But here’s the rundown. No-f’ing-one knows which way is up right now for natgas. People are getting stopped out left and right, on both sides. I’m more upset about all my equities going to shit yesterday. Luckily I’m still holding LABU short and that covered the whole slaughterfest… Geezus…

Anyway, Production keeps dropping. LNG is sucking but Sabine showing some life. Storage is now certainly livening up the entire situation. No doubt it’s time to be in UNL, because right now production is getting crushed. Storage will eventually go back to the norm, and production will be caught with their pants down. Meaning the longer this goes one, the more likely production will not recover enough to keep up with a lack in storage in the following 18-24 months. Production is quick to come online, but there are limits, and the boundaries will be tested over the next two years. To take a step back from this though; if pricing gets too wild in the US, LNG will suffer and correct the price. But right now my money is shifting to UNL. I’m going to add to my position today. I will double what I have in my Webull account.

I almost forgot, I exited UNG yesterday. With gas moving wild in both directions, a covered call is not a good choice for an options trade. UNL is for the long term, and the long term is better on the long side. My SLB position is sucking right now as well, but I’m willing to let the call expire, collect the premium and wait it out for a while.

Positions and P/L premarket 9/24/20

SLB has gotten too far out of range to roll out/down so I’ll wait to see if the underlying price will come back to something manageable. I have a couple weeks before I need to think too much about SLB.

Doubling up on UNL today. Good Luck