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April Option Update New Trade Alert Position Exit April 21st Natural Gas ETF – Sell long UNG April $6 Calls for $100 loss

UNG $1 loss closing out today and buying CLF at discount.

April Option Expiration Update


Exit UNG by end of today to close the long April option position.  Sell the April $6 Calls for the real intrinsic value with the ETF trading at $7.50.  Entered the trade around $2.50 in October for a cold winter play that never developed.



The Cliffs Natural Resources April $8 put sold for $0.40 will have shares assigned with the cost basis at $7.60.  A covered call will be sold next week to reduce cost once again.




WHEEL IT…  GoPro, Southwestern Energy and Seadrill


The strategy to sell cash secured puts is a method to buy stock at a discount or get paid not to… taking advantage of the market fears and volatility with high probability plays.


Originally sold GPRO February $9.50 Put at $0.45 for a stock cost basis at $9.05 when shares assigned.    Later, sold the March $10 Covered Call for $0.25 to lower cost basis to $8.80.  Sold the May $10 Calls last week for $0.30 to lower basis to $8.50.  


Originally sold Southwestern Energy November $11 Put at $0.55.  with stock assigned at $10.45.  Later, sold the December $12 Covered Call for $0.40 to lower cost basis to $10.05.  Then sold the January $12 Call for $0.30 to lower cost basis to $9.75. 

 A covered call will be sold to again lower cost basis.



Originally sold SEADRILL May $4 puts for $0.25 http://www.bullseyeoption.com/trade-alert/new-trade-alert-may-2nd-seadrill/  to put break even basis at $3.75. 

SDRL stock was assigned with July $4.00 covered call sold for $0.25 June 7th on long shares to lower stock cost again to $3.50.

 A covered call will be sold to again lower cost basis.


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