This winter has been nothing like previous ones. I don't think winter has never been this warm, which probably makes a lot of people think why betting a long on NG? Pricewise, it's already good. If weather starts turning even with a solid cold week, things can turn around quickly. NG is well below the cost of production, so I'm willing to sit on it for a while. $4 or $5 was about half and half, but I like it here.
Subscribe to:
Post Comments (Atom)
2 comments:
I was thinking about your strategy and was planning on buying some natty gas outright starting in february. What do you think about mini NG instead?
Sure, you can trade the mini contract. It gives you more flexibility to scale in if the price goes down. If you have 4 of mini lots, that's the same as one big lot at which you can do covered call if you wish to. I'd be very very surprised if we ever see below 2.
It's probably not a bad idea to scale in at every 0.25 or so. I will sell 2.5 or 2.75 puts if it gets there too.
Post a Comment