Capitulate LNG Spread

Bull Call Spread in LNG turned against me.

music selection: “I Will Remember” — Queensryche 

I had high hopes for a bull spread in Cheniere Energy (LNG). I was set to more than double my money over a month based on an uptrend in shares since November. The trend reversed and has moved down three consecutive trading days, including almost 5% today. I found myself out of money on both strikes and needing almost 9% by mid-February to earn maximum profit. I decided to sell and recover what time value I could.

I bought the 62.5/67.5 bull call spread with 19FEB2021 expiry on 19JAN2021 for 2.3324 per share (17 spreads). I sold today for 1.105 per share booking a 53% loss of 2,086 dollars. It was an ugly 8-day holding period. February is now pacing to come in at 3,074 in booked profits. I still hope to turn a profit on VXX long puts before the month closes.

Devour your prey raptors!

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