Natural Gas

Discussion in 'Energy Futures' started by gdtrader, Jan 1, 2012.

  1. Maybe I am crazy but think its looking really cheap true market is depressed now. Makes perfect time to start switching to alternative energy. Most homes in already get their heat this way why not power our homes and cars as well ?
     
  2. Maverick74

    Maverick74

    It's in steep contango. Front month is going to continue to go down and the back months are higher. FWI, we have a greater supply of nat gas then any other resource in this country. Front month could go a lot lower.
     
  3. It's already dirt cheap not sure how much lower it will go be before it pops.
     
  4. spd

    spd

    Famous last words "cant go much lower"
     
  5. I would love to buy NG long term at these prices but with the contango I just dont know how to do it in a clever way.
     
  6. Maverick74

    Maverick74

    What's dirt cheap? What month? You have to be more specific. Natty gas trades out 10 years on the curve. Which contract month are you talking about? Any long term buyers are going to go out further on the curve. They are not buying the front month that you think is "so cheap".
     
  7. Unfortunately there is no clever way to do it. If you're a big player you could go out to the swap market.
    I was just listening to a broadcast from the guys at Trade Oil Futures (.biz). They said one possible way is to sell out of the money puts, and although you won't capture the whole movement, it pays you to be in the trade. The better way is to go to MLP's in natgas transportation, and get paid a nice dividend for transporting it.

    You're right it is tough here, but to be honest, I think if there's a way to make money in tight situations, they are the ones to go to in order figure it out.
     
  8. Heard this morning that BoA and ML are calling for $1 handle in NG by Oct.
     
  9. MBC

    MBC

    Any link to that ?
     
  10. Bob111

    Bob111

    http://www.tradingeconomics.com/chart.png?s=ng1&d1=19900101&d2=20120131

    i see 2 on this chart,maybe 1.5..but $1? then short it and hedge with water :p

    cause if this global warming thing is for real and we dont need any more NG to heat our houses ,then we might need a lot of water,cause its' gonna be hot out there..hot and dry :p
     
    #10     Jan 10, 2012