I decided to open a third position in UNG, after a brief decline from a recent high around $14. I still believe that natural gas can only stay this low for so long. Please read my previous post for purchase rationalization. I will add one caveat here, that UNG is facing some recent regulatory issues involving capping the amount of natural gas futures it can hold, which has caused the fund to have to invest in more risky ways to track the natural gas price. As a result, I may not acquire any more of UNG until this is figured out. The performance metrics are below:
7/23/2009 -- Bought 100 UNG @ 13.14
7/23/2009 -- Sold To Open 1 UNG July $13 Call @ 0.88
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00
Downside Coverage: 6.69%
Possible Max Upside: 5.25%
Annualized Max Upside: 66.09%
No comments:
Post a Comment