I'm still long natural gas using ticker $BOIL. Made a boat load of money selling out of the money calls each and every month.Here is a fantastic article from a real energy analyst.
I'm looking at $4 per mmBtu sometime in 2017 and $6 per mmBtu by 2020. And thru that period I will be collecting premium by selling out of the money calls.
AIM is an investment method devised by the late Robert Lichello. This method is a proven way to take advantage of the inevitable market swings to enable us to ‘Buy Low / Sell High’.
Groundrules of how the AIM Strategy works:
TIP ME and I will email you the spreadsheet and a help file!
This index measures the cost of option protection (insurance). It trades in the futures market (CBOE). That means it has a spot price (today) and a futures price (next month, and the next month, and so on)
To make it accessible to stock traders, several products (such as VXX) have been created. VXX is normally in contango. That means the price today is less than the future price. You lose money because when it rolls to the next month, you sell low and buy higher.
During market downturns, VXX goes into backwardation. You make money since you sell high and buy lower as it rolls to the next month.
BUT BACKWARDATION ONLY PERSISTS TEMPORARILY!
To make $$$, you must own XIV. This product is the inverse of volatility.