The prior day post detailed my entry into the falling Natural Gas market with an option purchase on UNG. Not only did I not get bloodied from reaching for the falling knife, I immediately started a hedged position today on the strength of a nearly 4% bullish move. The ticket to the left shows that I sold 5 calls at a 39 strike price, five points higher than the calls were bought yesterday (34 strike price).
The table and graph show my hedged position with profit and loss results in a range of +/- 15% from today's closing price on UNG (36.36). The story is not yet written as I will likely make more trades, changing the profit curve over the next few trading days. The intrinsic value of my position shows a loss of $695, and the market pricing of the paired options shows me a paper loss of $80.
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