Sure looks like nat gas is breaking down again…futures falling below the 20ma today. My KOLD position is extremely high margin so I’m trying a trick that the tastytrade boys use sometimes involving inverted strangles. Hoping to get out of this position sooner but still with a nice profit.

Current position was Dec 105 calls/100 puts strangles worth 26.75 total premium.

I rolled the 100 puts up to 130 for another 10.25 credit. I’ve now got 105 calls/130 puts inverted strangles that have brought in 38 dollars in total premium. The goal is to have the price between the strikes at expiration just like a normal strangle. Both sides will still offset each other but since my total premium brought in is greater than the width of the strangle I’ll still book that 13 dollar difference per strangle. If it continues on up I’ll have plenty of premium to use for further adjustments…

#contangoetfs