Tuesday, October 6, 2009

Profit from Natural Gas Going Up or Down: UNG Straddles

UNG is trading around $12, which is closer to a strike price, allowing better plays on straddles (as opposed to strangles). Here are a couple of straddles for October and November (strangle), computed with our StraddlesCalc V2 tool. The maximum moves required are shown. Use multiple for values over $1k.

(corrected from earlier post whcih was showing 12-12 for Nov)

Note: You may receive technical analysis and alerts on UNG, sent automatically to you, by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.

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crk said...

I think there is a mistake in your post. $12 options for NOV are trading around .80 - .90 (Calls) and .80-.90(Puts) at the current price of $12.10

The Shocked Investor said...

You are correct, sorry, too much going on. The intent was to show the 13-11. Correction has been made. thank you.

crk said...

Thanks for correcting it.

Btw, one other volatile stock that is correlated with GLD and SLV is CDE. You may want to consider that for straddles.

The Shocked Investor said...

Thanks for the note on CDE. It is a good company, but has been plagued by poor share prices. I believe they reversed-split, whcih is usually a very bad sign. Last time I cheked it was $0.66 months ago.

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