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Shocked that companies and mutual funds would invest OPM (Other People's Money) in high-risk investments, the Shocked Investor was originally on a mission to find out if our money ended up in these dubious instruments. This blog now also discusses other financial topics, such as straddles, options, gold, natural gas, agri/food stocks, and the collapse of the US Dollar.
This is what I am following today, eyeing the inventories report tomorrow.
Close but not optimal yet.
UPDATE 12:45PM:
Here we go, as close to optimal as we will get:
Note that INO generated a red alert on UNG through their tool: their trade triangle tool.
(click)
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4 comments:
You said that the UNG straddle wasn't yet optimal.
What conditions are required for an optimal straddle trade?
Thank you
Hello Bike. The optimal would be when UNG is at $11 exactly and both calls and puts cost the same. Note that if UNG does not move and it ends as $11 the loss is 100%, with only 2 days to expiration. Leverage is extreme. 3% is nothing for UNG, but you never know. I like it.
October 14, 2009 12:49 PM
Thank you very much.
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