Home › Forums › Income Trades › Bearish Butterfly in UNG › Reply To: Bearish Butterfly in UNG
February 12, 2014 at 9:37 am
#2201
Steven Place
Keymaster
I’m closing out this trade at breakeven for a few reasons:
1. The delta is too high, and adjustments are too expensive and don’t make sense
2. The actual volatility in UNG is much higher than I anticipated
3. The option skew is making this trade… the best way to put it is “goofy.” That’s one of the reasons the delta is so high.
So I’m working out of the trade for breakeven to a slight gain. If you want to stay in the trade, I would buy enough March UNG puts to get your delta down by 75%