The Money Tree

Safely Generating Income in Retirement

Rollout on UNG

Posted by mounddweller on September 17, 2009

Guys,

First my apologies for not having much to say lately.  With the market up so much I haven’t been trading any CC/NPs.  I’m still waiting on that long overdue pullback.

However, with expiration coming up tomorrow I did go ahead and rollout my NP position in UNG another month.  Specifically I bought back the SEP $13 puts for $1.25 and sold the OCT $13 puts for $1.75.   This generates a 3.85% ROIC.  This is my 3rd month of rolling out for a net credit.   Below is a listing of my transaction history for this trade.  Note, my net cost is now down to $10.93.

UNG - Transaction History

Regards,

Troy

PS.  I’ll be running my VISIONS screen and will post anything that catches my eye.

4 Responses to “Rollout on UNG”

  1. Rich said

    Troy, I think we got the pause today. I have a SEP 18 GE call and 2 SEP 15 PWE calls in play and was hoping I would not have to roll them forward today. Both stocks have run up pretty good over the past few days. I would like the market to consolidate some so I can avoid spending the extra commission dollars tomorrow and be able to do roll ups on both stocks on Monday.

    Rich

  2. mounddweller said

    Rich,

    I agree GE has ran up pretty good of late. I think now would be a good time to sell an ATM or even slightly ITM DEC call on GE, thus betting that it finishes the year lower than it is now.

    Regards,
    Troy

  3. Rich said

    Troy, good advice. The market has sold off some this morning. when it comes back I’ll sell either a 16 or 17 strike depending on where ends up todlay.

    Rich

  4. Rich said

    I went ahead and sold the DEC 16 call on GE for 1.75. Added $166.75 to my cash account. I’m still about $395 upside down on my GE scorecard but if I can keep it from going any higher I’d be happy. Hopefully I will be able to roll my positions forward come DEC. I have a total of 3 contracts that expire in Dec. I have two DEC 12 contracts and I’d be surprised if they were not assigned early.

    Rich

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