UNG bankruptcy

Discussion in 'Trading' started by asdfghj7, Sep 19, 2010.

  1. Natural Gas will always be worth something, but if it continues to go lower, cound UNG go all the way to ZERO? Shoudn't UNG at LEAST have some value, regardless of the extreme lows that nautural gas trades at.

    Thanks Guys
  2. Thats very wrong.

    Should a trader always be worth something because the things he trades are worth something?

    There is a thing called a margin call, a bankruptcy, and a roll, all of which conspire against a trader.
  3. I'm planning on buying a natural gas stock in about a month or two. CHK more than likely. I'm watching it now to see if it can retest the $18 level then I'll buy.

    Some people think natural gas will stay at this level for years others think there will be a bounce coming soon. I'm willing to bet bounce.
  4. That makes sense. Do you if UNG can go all the way to zero?
  5. Aside from how often UNG has been frustrating long-term investors the last few years, it might actually be close to finally finding a bottom (at least a short-term one) in the 6.00s. Thursday's rally and volume make UNG look a lot more bullish.

    Buyers definitely need to be extremely careful since UNG has been so weak for so long, but I'm thinking of maybe initiating a small partial position soon.
  6. CET


    This ETF still trades millions of shares daily, so it is unlikely that it will disappear. If you knew much about ETFs you would know they just do a reserve split if they think the price has gotten too low.

    Most ETFs, especially the ones like UNG that are based on futures, are made for day trading and not investing. If you think there is a very strong move ahead for a futures-based ETF you might benefit from a short swing, but the general rule is keep it to day trading on these. All JMHO.
  7. joe4422


    Reverse split or not, you still get hurt the same. UNG was not designed to be killed by contango, but that is what has happened to it. There are other and better ways to play natural gas. UNG is an exmaple of the worst way to play natural gas.
  8. All great stuff guys. I wasn't aware of a reverse split possibility and I just read the article. Thank you. I'm still up in the air on the possibilty of UNG going to zero. Any further help is appreciated.
  9. Buy-Buy-Buy!!!

    #10     Sep 20, 2010