Welcome to the free video for Simpler Options. So let's take a look at the UNG trade and at this point we have the squeeze. We're one dot in, the week is over and the question becomes you know, are we there, are we done yet kind of a thing.
Well, let's switch over to the natural gas futures so we can look at the voodoo lines. We talked about this in the ETF course, how the importance of actually looking at the underlying futures contract. I am looking for a couple more days of strength. See if we can get 448 and then 461, OK. But at those levels I would like to start taking some of this off the table.
So for UNG we've got a couple of different positions here that we're managing. First we've got the whale trade. This is the one where we've got the Delta 20 and the Delta 70 options, which currently are actually Delta 49, OK. That's actually -- that's where you start really making...so in something like this. The reason this is so powerful is when you have Delta 20, the first dollar you make 20 cents on your options. OK. The second dollar your Delta increases so you'll make like 38 cents. And then the next dollar the Delta increases so you're making 49 cents. So it really runs for really really cheap when you buy Delta 20 options, if suddenly these are Delta 80s then suddenly in this trade if you know, where you have 10 contracts, you know on the first dollar you're making you know, $200.00. But by the time you get to the 6th or 7th dollar you're making $800.00 for every time UNG goes up a buck. That's where you really cash in because you're able to buy a lot of these.
But at the same time we want to be conscious of the fact that you know, maybe this thing is done. So what we like to do you know, with these Delta 70 calls is start selling these off to start reducing that risk and paying for the trade. Take a few of these off but in general I want to keep these and see. In a perfect world what we want to do on this is we want to stay in a good chunk of those Delta 20 options as long as this momentum is going higher, OK. And then only exiting it when it loses momentum, all right.
For those of you getting the free video, if you're not a member of our site, just want to let you know we are having a...kind of a membership drive here at the end of the year. And we're looking at raising the rates in 2014. If you sign up at the lower rate you know, you're locked in, you know we never raise the rate on you. If you're a current member don't worry about it. You're not going to get your rate increased. If you go to simpleroptions.com/member, we do have two main memberships. For those of you if you're just interested in just the big picture, like once a quarter we do a video on the big picture. That's $49.00 per year. So, if all you're interested in is like the big picture like hey, what's the dollar going to do, etc. etc. So once a quarter I do a big picture update and that's what that is, all right.
Now, if you sign up for a silver membership -- OK. A silver membership, first of all it includes this, all right. But for $79.00 a month you get the monthly options video, which shows the trade that I'm in and what I'm looking at, and what I'm thinking the market's going to do. And obviously it includes the big picture outlook. You get weekly training videos on the platforms that we use. There's an options traders forum where you can ask questions. And we do have tons of resources on the site...recorded webinars, tutorials. You also are eligible then for member pricing on our DVDs, and different indicators that we have.
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So again we're looking at raising the rates in 2014. So if you think you might be interested in this -- I mean if you work full time, I would recommend the silver plan. That way you can just review the videos at the end of the day. If you are trading full time then I would try out this. This is the gold plan, and the gold plan of course it includes this and includes this and right now it's just $147.00 a month before we raise the prices. So, OK. Hope that helps. Go to simpleroptions.com/member. It'll take you to this page and get you hooked up. Have a great rest of the weekend and we'll see you at the next update.