Bullish positions in UNG (US NAT GAS Fund ETF)


Underlying chart …
UNG-6_29_2014
A few different approaches to initiating a bullish position.  Each one has it’s nuances in terms of capital required, P&L.
– A call debit spread, financed by the sale of cash secured puts.
UNGPos1-6_29_2014
– A synthetic covered call – call diagonal initiated by the purchase of a far out deep ITM call (simulating the purchase of the underlying) & the sale of a near term call.  There are multiple rolls embedded within this position. i.e. you can sell calls with different expiration cycles as time passes.  The capital requirement is much more favourable than a regular covered call.
UNGPos2-6_29_2014
– A regular covered call – purchase of underlying and sale of calls against it.  Calls could be sold against this position with multiple expiration cycles as time progresses.  This position requires the highest capital requirement.
UNGPos3-6_29_2014
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This entry was posted in Bull Call Spread, Commodities, Covered Write, Diagonal, Natural Gas, Options, Short Put, UNG. Bookmark the permalink.

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