BOIL ETF Bullish inclined Naked Puts 20 Aug ExpiryBoil is a new ETF that I am trading to shield myself from inflation concerns. So far it has only risen even when inflation concerns are impacting the market negatively, even oil and gold saw drops.
I entered two trades with one being tighter than the other (Trade 2), with a bid to get a better price at a strike supported by a strong resistance and bullish momentum. Still in hindsight I think this is a tad too aggressive. Will not do this again.
BOIL is based on Natural Gas Futures.
Prices for the fuel are soaring across the globe as scorching weather stokes demand for electricity to run air conditioners.
In the U.S the rally is also underpinned by concern about a potential supply shortfall in the winter, when gas consumption peaks as homes and businesses crank up the heat. Stockpiles are already below normal for the time of year, and production growth has been restrained
Gas only makes up 34% of total US energy consumption
Trade 1
Sold 12 Puts @ 0.90 Strike 34
Max Gain: Est $1080
% Distance to Strike: 20%
Trade 2
Sold 23 Puts @ 1.20 Strike 38
Max Gain: Est $2760
% Distance to Strike: 7.82%
Total BP Block: 75K
