I got called on my UNG holdings last week after options expiry. Since selling at $41, UNG has now dropped to around $39 and everyone is talking about getting a small piece of this commodity play. Unfortunately, too many people are betting on a tired horse and a hurricane that may never come but who knows; not much in this market makes sense any more anyway…

There is heavy action with a short fuse on UNG calls and the volume is double of normal trading. The August ATM call options are yielding about 5% with only 25 days till expiry! This is where the temptation comes in for easy money using ETF Covered Calls but I’m not biting. I’m going to let this fish get away as I sit and wait for calmer seas before dipping my toe back in. Cash holding for the rest of the week!