For the Income Portfolio let’s add this:
-
- Buy 50 UNG 2026 $10 calls for $6.20 ($31,000)
- Sell 40 UNG 2026 $15 calls for $4.25 ($17,000)
- Sell 20 UNG 2026 $13 puts for $3 ($6,000)
- Sell 15 UNG Sept $14 calls for $1.70 ($2,550)
We’re paying net $8,000 for the 547 day spread that is $4.29 ($21,450) in the money. If we get assigned the puts at $13, that’s 10% below the current price and we’re collecting $2,550 (31.8%) using just 64 the days we have to sell.
If UNG is flat or down, we have 7 more chances to sell, so let’s say $14,000 would be a nice profit and if UNG goes up, the extra 5 short calls are very unlikely to hurt us on the way to our potential $50,000 spread so $42,000 (525%) upside potential PLUS whatever we collect on the short call sales along the way!
