Today, I opened a short strangle on the upcoming month contract of natural gas.
The details of this trade are as follows:
|2.44||2||long to close||2.3||P||0.054||-0.28||25||–||$7.42|
|2||long to close||3.2||C||0.004||0.03||$7.42|
|2.14||3||long to close||2.1||P||0.024||-0.40||1||–||$7.42||Put closed
Following my previous successful trade in NG, I’ve been looking at it ever since.
/NG has been trading in a fairly narrow channel for several months now. The summer hot season is more or less over, so demand should not be a catalyst towards higher prices. Even if an unexpected heat wave comes, it won’t raise demand as much, as to put my strangle in jeopardy.