10 Money Show Trades You Don't Want to Miss
OptionsZone Experts, May 15, 2009
Free Trading Guides
-
United States Natural Gas Fund
By Nick Atkeson and Andrew Houghton
The United States Natural Gas Fund (UNG) follows the prices of natural gas delivered at the Henry Hub in Louisiana, as measured by the changes in the price of the futures contracts on natural gas that trade on the NYMEX. The price of UNG has been in a steady decline since July 2008, when it was trading at more than $63. Today, it is about $16. Virtually every market-traded asset has seen appreciation since the March low, including oil, which has rebounded from about $30 per barrel to above $50. And natural gas typically has a high positive correlation with oil.
Recently, a lot has changed for UNG. From a technical standpoint, it is beginning to breakout from its 10-month decline on rising volume. And from an options standpoint, call volume has been high. For UNG to return to where it started the year would mean a 50% appreciation from current levels.
Interested in getting started with technical analysis? Check out Technical Analysis 101.
More By This Expert
Dawn Pennington
Time, Price and an Option's Profitability
It's one thing to bet on a stock making a $5 move. It's another thing entirely to expect it to happen in too short a period of time. Learn why some options finish in-the-money and others don't.
Read This Before You Buy Another Stock
A savvy stock position can start with a single options trade.
This technique can help you breathe a sigh of relief as it aims to relieve a 'choking' portfolio.
If you are familiar with buying calls and puts, we'll show you how to buy them even cheaper.
Anatomy of a Stock Option Ticker
Option tickers may look like a bowl of alphabet soup to you, but each letter means something.
