Morning Thoughts – Boring Friday? Maybe

It’s supposed to be slow Friday, yet someone already wants something… Fine. Let’s make this quick. Demand has sucked, mostly Residential/Commercial demand has sucked. But this is related to super bearish weather, and the average will even things out. For example, the forecast has shifted a bit cold from a couple days ago to now. So prices got on a rip yesterday due to weakness in demand, and storage threatening to fill to max capacity. We know storage can’t fill to the max at this point, but it is still influencing market until a stronger draw season has come around. All this has been overshadowing the lack of production that isn’t going away now anytime real quick. Weather will also swing bullish at some point, and prices will react the other direction. I’ve loaded up on UNL. As long as UNG isn’t crushed, I’m all set. And my average is decent, and if prices fall from here, I can always cut it off for a relatively small loss.

So I added 100 shares of UNL at $7.95, I’m content with that. The last price for yesterday shows $7.85, but should open closer to $8 today if natgas prices hold where they are. If prices rocket up to my break even of $8.13, I will reduce the 100 shares. If prices don’t make it to $8.13, I’ll hold the total 250 shares over the weekend. UNG will be held for a while now. I have not been so focused on UNG, and got a bit ahead of myself. I’ll just wait to see how things are going to make any changes to UNG. It’s pretty well stuck right now.

1 order to reduce UNL at $8.13 – to reduce by 100 shares. Hold the rest. Oh crap, I entered another KOLD covered put for December expiration. I considered rolling the first covered put back to December expiration to be able to manage it more closely. I’m not going to do this, I’ll just hold it where it is. The latest KOLD covered put is a 45 strike, and a break even of $49.61. I’m pretty happy with this trade; it will expire in December and I’ll have a chance to roll and reposition if I choose and the market is calling for it.

I have updated the BBB strategy with the latest results, and they are bad. I don’t have much to say, except I’ll probably be back to the drawing board on that one.

Click here to see the BBB strategy update

Hope the weekend is good to you.


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