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Jack Haddad
  • What would happen to UNG if natural gas explodes to the upside? 0 comments
    May 9, 2009 10:02 PM | about stocks: UNG

    The shares on Friday closed at 16.92, up from a recent low of 13.  If you want to get in at the current level but afraid of a pullback, buy shares and hedge them with June strike 13 calls at 4.10/contract.  That should give you an .18share in intrinsic time value.  But since natural gas is on uptrend stick, I would consider strike15 and higher.  Strike 15 pays you 1.58/share in intrinsic time value.   A pullback to 15 from the current levels is a reasonable hedge.  For every 1000 shares, you can earn 1580.00 in premium.

    Stocks: UNG
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