Sold UNG Feb 6 puts for $0.29.
A very simple and safe trade is selling puts on commodities that are near the cost of production — or when everyone says there is a huge supply. Prices can dip lower for a short while, but unless the world blows up they will rise again some day: very limited downside. The only commodity right now that fits that is natural gas. And the commercials are net long.
+ Monthly CCI is trending up from a low.
+ Weekly CCI above monthly CCI.
+ Daily CCI seems to be turing up while price has support on the lower Bollinger Band.
– 170 EMA still heading down, but not too big a deal if price is at commodity production lows.
+/- 34 EMA is flat.
+ Commercials very net long.
References: Buy March natural gas
Feb 3: Covered at 0.24 +17% Half the reason this trade was closed was to show even when selling puts, and price falls near the original selling point, the puts can be covered at a profit. Using time.
The other reasons are listed at the bottom of the natural gas long trade that was closed yesterday. (Price likely to go down for a bit.)