Sell Alert: December 9, 2013

Sell Alert:  December 9, 2013

 

Option Strategy:

Sell to close the US Natural Gas Fund (UNG) January 2014 $19.00 calls.

 

Commodity Outlook: Natural Gas

This call trade in natural gas has worked nearly perfectly…

The price of this commodity has surged over the past few weeks as bitterly cold weather enveloped most of the US.  But more importantly, natural gas is jumping beyond our second profit target at $4.20 mmBtu this morning.

Even though I suspect even higher prices over the next few months, I believe we’ll see natural gas start pulling back later this week.  After all, the NOAA’s 6-10 day outlook is calling for a break in the cold weather soon.

So go ahead and sell to close the UNG January 2014 $19.00 calls.

As I write, these contracts are trading for $1.96… that’s a 90% gain from our buy price of $1.03.

Congratulations on a great trade!

*** Editor’s Note*** Be on the lookout for another trade in your email inbox soon!

 

Category: Commodity Trading