I decided to open another covered call position in UNG, as I believe it has reached a near-term bottom around $8.80. Natural gas prices have been further depressed recently due to the continuing high storage levels as well as the relatively warm fall that the US has been experiencing. As such I think the risk/reward for this position is good. The profit/loss info is below:
11/19/2009 -- Bought 100 UNG @ 8.83
11/19/2009 -- Sold To Open 1 UNG December $9 Call @ 0.38
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $845.00
Commissions (Included In Cost): $5
Downside Coverage (from current price of $8.83): 4.3%
Possible Max Upside: 5.56%
Annualized Max Upside: 67.59%
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