Gas at 2 bucks?

keviniyengar · May 25, 2009

Two weeks back bottom fished UNG and sold during the pop.
Now struck @ 15.30,14.34.13.7 )300 shares each!) Will sell 600 if it pops to 14.5/14.7 or considering selling June 14/15 calls on any up tick.
Natty Maestros! comments please!

handle_this · May 26, 2009

However, look at the "percent change" rather than absolute

Quote from texrex2002:

Found this this morning, not sure if you guys can see it. Yield Curve: Prices Respond to Storage Changes.

Papa Roach: my company has some storage in Ohio, and we do exactly as you said: Well in advance of injection season we'll buy April - October and simultaneously sell November - March to lock in a spread (but we do it with swaps, not futures). As these swaps settle financially we have exactly the right amount on $ to inject (for buying spot gas to flow into storage) and on the withdrawal side we immediately sell the gas to meet our finacial swap obligations.

Not much different than renting a supertanker to park oil in a contango market.

We're somewhat restrained by "ratchets" that dictate how much gas we need to have in storage by certain times, so it's not fully de-regulated, but it's still a nice little cash machine.
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Gas at 2 bucks?

keviniyengar

chart of ung.gif

handle_this