Double Ratio on Natural Gas (NGAS)
The last 50 days, we got a nice move of over 50% in Natural Gas over 50%. I just closed a covered Strangle for a nice profit and its now time to redeploy, since I think the price is going to slow down.
Price is over extended above the 20EMA and I expect a correction, so I just made one of my favorite trades. The double Ratio. I bought the 4.25 Call and sold two of the 4.45Calls and bought the 3.45 Put and sold the 3.25 Put.
This trade has a 74% chance to make money and my target is a profit of $800. Since I am using $2,100 to have the trade on, I am expecting a Return of 38% in 56 days (Not bad).
We make money as long as price stays in the green zone between the prices of 2.969 - 4.73 and since We have our Moving average above our break even in the downside we would need a pretty strong move down to get tested.
Price is over extended above the 20EMA and I expect a correction, so I just made one of my favorite trades. The double Ratio. I bought the 4.25 Call and sold two of the 4.45Calls and bought the 3.45 Put and sold the 3.25 Put.
This trade has a 74% chance to make money and my target is a profit of $800. Since I am using $2,100 to have the trade on, I am expecting a Return of 38% in 56 days (Not bad).
We make money as long as price stays in the green zone between the prices of 2.969 - 4.73 and since We have our Moving average above our break even in the downside we would need a pretty strong move down to get tested.
Transaction en cours:
We got one of the biggest day move in the last 2 years yesterday, so I decided to close the Call ratio for a profit of $490 and Sold to open a new Call to reduce my cost basis in case this thing keep falling down.
Trade fermée: cible de profit atteinte:
Closed for a $840 win.
