The Money Tree

Safely Generating Income in Retirement

Posts Tagged ‘Roll-out’

Rollout on UNG

Posted by mounddweller on August 23, 2009

I executed a rollout on my NP position in UNG on Friday.  You’ll recall I did the same thing last month.  However, last month I was able to get a net credit of $0.70 on my roll from the JUL $13 puts to the AUG $13 puts.  This month due to UNG being well under $12/share I was only able to roll for a $0.30 credit.  This gives me a ROIC of 2.31% (.3/13).  If all goes well natural gas prices will recover in the next month or so and I’ll either be able to exit the position or roll again for a much better net credit. 

The chart below summarizes all of my NP trades in UNG todate.  The net sum of these transactions is around $1,276 generated over a 3-month period, thus giving me a cumulative ROIC of almost 10%.

BLOG - UNG Position

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