Rolling: UNG January 21st 17 Short Call to 14 Short Call
... for a .42/contract credit.
Comments: Rolling down the short call of my UNG straddle to reduce net delta directionality and improve my break evens. The resulting setup is a 3-wide inverted 14C/17P for which I've collected a total of 5.44 in credits -- 5.02 for the original short straddle (See Post Below) -- plus an additional .42 here. This also cuts net delta about in half, with the 17 short put clocking in at around 79 delta and the 14 short call around -39. The setup remains net delta long (40.81), leaving room for a potential bounce should that occur. A "perfect finish" for an inverted setup is basically the mid point between the inverted strikes -- in this case, 15.50. I will probably money/take/run if the opportunity presents itself, since there is seasonality with UNG, and I'd rather not roll this out for duration as I would with just about everything else since seasonality favors lower post-winter.
My original price target was a 3.76 debit to close (25% of max profit), so I'm revising that to 3.76 plus .42 or 4.18.
Comments: Rolling down the short call of my UNG straddle to reduce net delta directionality and improve my break evens. The resulting setup is a 3-wide inverted 14C/17P for which I've collected a total of 5.44 in credits -- 5.02 for the original short straddle (See Post Below) -- plus an additional .42 here. This also cuts net delta about in half, with the 17 short put clocking in at around 79 delta and the 14 short call around -39. The setup remains net delta long (40.81), leaving room for a potential bounce should that occur. A "perfect finish" for an inverted setup is basically the mid point between the inverted strikes -- in this case, 15.50. I will probably money/take/run if the opportunity presents itself, since there is seasonality with UNG, and I'd rather not roll this out for duration as I would with just about everything else since seasonality favors lower post-winter.
My original price target was a 3.76 debit to close (25% of max profit), so I'm revising that to 3.76 plus .42 or 4.18.
