Monday, August 17, 2009

Natural Gas on the Radar Screen

With today's drop, natural gas is definitely on the radar screen for short trades.

Natural gas futures are again reaching a 2 handle. Here's the 1-year chart:

UNG chart:

HNU.TO chart:

HND.TO chart:

Potential UNG September straddles:

UNG current price: $12.27

September 12 call: $1.00

September 13 call: $0.60

September 12 put: $0.75

I have made about 7 consecutive profitable trades on natural gas, all of them going short on spikes during the summer (mainly using UNG puts and Fundamentally, there is no reason for prices to go up. However, now it's hurricane season and high volatility is expected. Spikes are great for trading.

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