Natural gas storage inventories will be published at 10:30 today. We have had very cold weather in the East, but has it been the same in the west? Temperature has an effect on natural gas drawdowns.
This is the current chart, ahead of this week's inventories, comparing 2009 with 2010 levels:
As can be seen, levels have come down significantly, from the well-above average that they were until late last year.Regardless of direction, temperatures, or storage levels, straddles can profit, either way up or down, as long as the stock moves the required amount. Here are the February versions for UNG, with prices as of EOD yesterday:
100% loss. Computed with StraddlesCalc Tool
Please do your own due diligence. This is not advice. Options are very dangerous and may cause