UNG correlated to Natural Gas futures bearish move this morning has taken away gains from February 20th.
The sudden reversal will continue to play out providing an excellent opportunity to make an options play on this one. A simple Buy on the Put at $27 Strike at the opening bell would have up by +.66%. Target underlying price is $24.92.
The Historical Volatility is at 98% and the Current Implied Volatility is at 57%. Implied Volatility ranking is 51.60%. Under the rules of engagement with these volatility percentages, it is a "sell" signal going into the last "leg" of the March 14 (25) option chain. The Delta at $27 Strike is -.561.
HV being near 100% means there is high volatility giving us a directional move thus the underlying volatility will offset the time decay on the option premium.
UNG is currently down -5.60%.
I BOT a PUT at $27 Strike, 1.40 premium and one more PUT contract at $26, 1.17 premium. The $27 Strike chart shows a resistance at 1.88; but a "sweet spot" to come, looking at 2.72 to take profit before March expiration.
The sudden reversal will continue to play out providing an excellent opportunity to make an options play on this one. A simple Buy on the Put at $27 Strike at the opening bell would have up by +.66%. Target underlying price is $24.92.
The Historical Volatility is at 98% and the Current Implied Volatility is at 57%. Implied Volatility ranking is 51.60%. Under the rules of engagement with these volatility percentages, it is a "sell" signal going into the last "leg" of the March 14 (25) option chain. The Delta at $27 Strike is -.561.
HV being near 100% means there is high volatility giving us a directional move thus the underlying volatility will offset the time decay on the option premium.
UNG is currently down -5.60%.
I BOT a PUT at $27 Strike, 1.40 premium and one more PUT contract at $26, 1.17 premium. The $27 Strike chart shows a resistance at 1.88; but a "sweet spot" to come, looking at 2.72 to take profit before March expiration.