Selling Natural Gas August Futures

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Sold 3.15C@$330 and a couple more@$350 a few weeks later. Closed the 3.15c positions on the 2nd of August at around $115 a pop. I felt that for the short period of 3 trading days, extracting 67% of value from my positions seemed like a good deal and reason enough to close early. Also, short term sale of the 2.8p@$180. 

Basis of trade:

  • Natural gas prices were suggested to head into a downward trajectory from July to mid October according to seasonal charts. Selling above the long term resistance of $2.95 provided extra margin for error.
  • Short term sale of $2.8 puts were risky and based off a near term support point of $2.8. True enough, prices hit $2.796 and bounced back up a few minutes later.
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