Rolling Encana

So far, the Encana trade certainly hasn't gone in my favor. The weakness in natural gas stocks has continued, so I'm going to roll it forward. I'm not sure I'll be around a computer tomorrow, so I went ahead and made the trade today. Unfortunately, ECA has dropped so much that there is very little premium to be had, so I was only able to get an additional $0.32. That's a little over 1% in cash(based on the strike price of $27). Not great, but I'd rather hang onto cash right now.

• Buy to Close: 1 ECA Oct 22 2011 27.0 Put @ $7.12
• Sell to Open: 1 ECA Jan 21 2012 27.0 Put @ $7.44

I've now collected a total of $1.63 in premium on Encana.

The Numbers

• Cash: +$32
• Short Option: -$30*
• Margin: -$0*

* These numbers take into account the old option being removed from the portfolio.