Long NG - Short $XNG

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

  1. 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


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

  3. ess1096


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


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