Morning Thoughts – Waiting

I’m not even sure what to say here today. I’m distracted by speedometers and vaccines. Vaccines, of course, are good for Oil and Gas since it will help boost demand. Well… Good for Oil anyway. Natgas is getting consumed at a strong rate regardless. Oil being suppressed was good to keep associated gas output down. Since oil storage is evening out; prices will start to recover, and producers will get back to work.

My one thought about oil is Iran. Iran is exporting Oil anyway, they have Chinese and Russian support. But if US sanctions are lifted, with Biden in office…. And Iran is shifting presidential powers I guess? All these changes gives rise to risky decisions, like Iran saying they are going to do what they want, like exporting as much oil as they want, spurring drama in OPEC, and potentially flooding the market? I don’t really know… It’s just my paranoia kicking in. Of course, if OPEC gets into a squabble and floods the world with oil again, it will keep US oil production down and associated gas down as well. It’s always something.

Besides all that, I’m still holding.

My positions as of Pre-Market 11/24/2020

KOLD is currently showing a profit for the last covered put I placed. And I’m showing the wrong expiration date for that thing. How about 12/18/2020. I copy and paste each line when I enter a new trade, then forget to change the date. Also, I may not be at such a profit, as the bid/ask for KOLD options is not very good. I still feel good about the position of all my trades currently. Well… All my gas trades anyway.

There is a strong chance I will reduce UNL by the end of the week. right now it looks like it could be as early as today. I moved my limit up to $8.25 for now. It’s the lowest ask price on the exchange right now. Since it is 100 shares, it is showing up as the ask for UNL. That’s not important, just kinda cool. Anyway, If Natgas continues slowly higher today, I will lower my UNL ask down to $8.15 or take $8.13 if prices just stop there. I like to reduce when holding a rather large position. I always will. It has kept me out of trouble for the most part.

As for UNG, I’ll just hold on to it. If I reduce UNL today, this will give me some room for more UNL or UNG down the line. It will take some time, but the market will respond to any decreases to the storage surplus, and it is still coming. Patience


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