UNITED STATES NATURAL GAS: Who Wants To Make A Widow? (+36%)
We expected more heat and darkness from the ultimate widow-maker asset.
Executive Summary
The dark side of trading; we have seen darker.
We feel sluggish today, fine, but no signs of that emotional frenzy promised by the widow-maker crowds.
We close the trade and go back to theory.
1. Recap Situation
We were interested in the psychology of widow-making and how to climax on narcissism. Maybe we didn’t put on the trade correctly or pulled the trigger right, but it feels like we haven’t experienced the real deal.
Check out the original BrainDoζer below.
2. Why Now?
It is always good to exit before someone gets hurt. Contract maturity moves closer, and we start feeling the heat after all. Implied volatility has not come down as much as we hoped, but we can still close for a decent profit inside our break-evens.
3. Trade Execution
3.1 Trade Entry - Nov 3, 2022
Total: 4.65 Credit.
3.2 Trade Exit - Nov 29, 2022
Total: 3.45 Debit.
The absolute return of this trade is
4.65 - 3.45 = 1.20
The capital used was 3.35, resulting in a return on capital of
1.20 / 3.35 = 35.8%