Monday, December 19, 2011

New trades - SLV and UNG

Wanted to do something today so made the following trades:

Short 10 SLV Jan 25 Put for $0.465
Short 10 UNG Jan 7 Put for $0.47

Obviously looking at the chart both of these have been hammered this year, that's pretty much the rationale for selling them. UNG is the more aggressive trade as that put is already in the money - this one was definitely influenced by Tom Sosnoff.


  1. Added 1 more trade in the weekly's to try to get some quick theta, and going with the theory that buying out of the money weekly options is generally a losing proposition. If SLV continues to tank this week the plan is roll the position down and out.

    Short 5 SLV DEC4 27 Put for $0.21.

  2. Should have done this yesterday but didn't think of it until after market closed. Decided if I'm willing to buy at 25 in Jan, I'm more willing to buy at 19 in April, so put another position on:

    Short 10 SLV Apr12 19 Put for $0.35

  3. Trade update:
    The Jan 25 Puts that I sold yesterday are down 40% today, decided to just take the quick profit. Sold them for $0.465 yesterday, bought them back for $0.28 today.

  4. Trade Update:
    Safe to say the short DEC4 27 Puts will expire worthless for maximal gain. Should have done more than 5 contracts but that's the way it goes.

  5. UNG down 3.5% this morning so took the opportunity to sell more puts.

    Short 10 UNG Feb12 7 Put $0.67
    Short 10 UNG Apr12 6 Put $0.32

    Don't plan to add any more to this position, will update later when I either roll or get assigned on the my Jan puts.