Natural gas inventories released today showed a sharp drop of 266Bcf. We are still 3.7% larger than last year's, which is also a sharp reduction in the oversupply.
Chart comparing 2009 and 2010 storage:
The reduction in glut is clear. Note how the top red line drops sharply and falls within the 5-year average channel. However, keep in mind that the average curves were changed last week, as we posted last week.
Here are straddles and a strangle for UNG in February:
Computed with StraddlesCalc Tool. The tool shows the maximum moves required for profitability. Actual moves may be lower as there are 4 weeks to expiration.
Please do your own due diligence. This it not advice. Options may cause 100% loss.
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