Savvy Trades and Investments

[Swick984]

BOIL / KOLD - The swings on NG the past 4 -8 weeks have been severe. I've attempted to play both sides by selling calls on both BOIL and KOLD (~2 week forward calls), but the magnitude of the movements of late have been above expectation and frankly has provided for an unprofitable trading strategy. Perhaps looking at 1 month forward calls may be more effective in this environment? (Longer time horizon for decay and lower delta)

That said, I continue to believe that the magnitude of the swings will subside and that there will be more "chop" in the price here as the supply picture here remains robust with a 15-20% surplus in inventories relative to 5-yr avg. I plan to stick with my strategy, perhaps extending terms to 3-4 weeks on a rolling basis. The drop in BOIL tomorrow will help my existing positions, but could use a week or two of price bouncing between $2.50 - $2.90...