13 September 2018 THURSDAY


As per today’s newsletter issue 13 SEP 2018, I chose to sell the 400-strike Corn DEC18 CALLs.  They have a 93% chance of expiring worthless, and an ROI of just over 20% in only 71 days.

Crude Oil

Jan19 Crude Oil down 1.50 or more this morning, profit taking off of the trade UP in price yesterday due to possible pipeline interruptions (as discussed yesterday here, see 12 SEP 2018 TRADE COMMENTARY.)

Natural Gas Weekly Report:

The stats on NG come out each Thursday in the weekly reports.  I do not see anything remarkable in today’s report.  Since I am short a DEC18 NG 3.75 strike CALL, this “no news is good news.”  Weather systems off the Eastern and Southern Coasts of the United States, often result in spikes up in prices.  For the longer terms (my short CALL), I see no problems to be concerned about at this time.


The 15-year average seasonal patter for the DEC NG futures:

I expect to shopping for more Natural Gas options to short soon in the 2019 contracts.  If you haven’t traded NG  before and want to prepare, look up the CONTRACT SPECIFICATIONS sheet for it here: https://www.cmegroup.com/trading/energy/natural-gas/natural-gas_contract_specifications.html

And you can find out more about Natural Gas at this link: https://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html


That is all today.  Good trading to everyone. – Don


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