Long NG - Short $XNG

Discussion in 'Energy Futures' started by ess1096, Nov 26, 2008.

  1. ess1096

    ess1096

    Seems set up for a nice trade.
    NG is trading below the Oct 10 low while the $XNG is well above it. Don't know which way the gap will close but It will close eventually.
    :)
     
  2. ess1096

    ess1096

    Here is a visual of it.............

    [​IMG]
     
  3. ess1096

    ess1096

    BTW, similar setup in CL/$OIX currently.
     
  4. HLB

    HLB

    how do you play ^XNG? You can't short index outright...
     
  5. ess1096

    ess1096

    I personally use options on one or more of the components of the index.
    For example, one of my accounts has UNG calls and SWN puts.

    Or you could just use options on the index itself (sell calls or buy puts).