Options On NG Futures - Broker?

Discussion in 'Energy Futures' started by Frankie Yale, Jul 15, 2007.

  1. I'm looking for a discount broker that accepts orders for futures options on Natural Gas. IB only has the futures. Thanx
     
  2. jsmooth

    jsmooth

  3. try proactive trading. low commisions, nice platform
     
  4. 2mnytrdz

    2mnytrdz

    I use XpressTrade. About 22.00 commission per option though. I probably won't trade NatGas options anymore, though. When I send my order, I don't know where it is or what is going on or what the price on the floor is. I have to calculate an estimate and I hardly ever get the price I want. It's like flying blind. I can't wait till the electronic options pick up.
     
  5. jsmooth

    jsmooth

    Why dont you just call the floor (or your broker, who will then call down to the floor) and ask for the market BEFORE you just blindly send an order?
     
  6. another option is just use equity options on UNG.. you have to figure it out -- ie 20c of natural gas corresponds to about $1.00 of UNG price movement.

    spreads aren't horrible and vols are approx the same.
     
  7. what type of options orde are you looking to place for ng? straight calls/put, bull spread? more info please.
     
  8. Straight calls & puts. Apparently IB is planning to trade NG options within the next month or two.

    Another possibility is to buy (or short) the NG royalty trusts. Buyers also receive the dividends, though if the price of NG remains low or falls, the dividends will be reduced.
     

  9. the royalty trusts don't correlate well enough with NG price. UNG is already out - its the futures tracker ETF. and it has options.

    more appropriate for a small player anyway.
     
  10. rdm239

    rdm239

    long an ung oct 40 50 cs for 2.20, what do you guys think?
     
    #10     Jul 24, 2007