UNG appears to be setting up to one of my favorite chart patterns, and it's almost time to pull the trigger. I haven't been watching UNG for awhile, so I didn't catch the short (inverse pattern which triggered on 5/3) or the previous long setup (which occurred on 4/11). Daily chart is shown and it's made a bunch of lows followed by an up-bar which didn't break the low (short term support). In addition, this is a higher-low off a previous higher-high. Resistance areas are between 12-13 in the near term. Typically you can play this with a fairly tight stop, as "proper" behavior for this setup should give you very little heat. I will probably play it in two parts: 1) Short-term = Jul11 C (Stk=11) You get a little less bang for your buck buying July over June, but it's not much, and I like a bit more time for things to work out (deltas about equal, about 20% less gamma). 2) Long-term = Jan12 C (Stk=6). I will buy the Jan12, 6C as it is quite DITM and a good proxy to the underlying. Normally you can work the ask to chop off a bit of the premium. I may also sell a few calls (say Oct 14/15) to offset this. I need to see UNG break the previous high to trigger my entry, though. If it gaps tomorrow, I'll most likely wait for a pullback (unless it's only a few cents). Anyway, we'll see what tomorrow brings.