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  • UNG premium today took around 3,5% 3 comments
    Sep 3, 2009 12:31 PM | about stocks: UNG
    Any news about it?

    Very strange this rebound, we are around 16,40%.

    Stocks: UNG
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  • Danny Devito
    , contributor
    Comments (85) | Send Message
     
    Author’s reply » Anybody have an idea about what happen if UNG shut down?

     

    I can't call the free U.s. number, can somebody call the investor relation and just ask if the "shorters" have the same rights of who is long and so the positions will be closed at the NAV value without need to buy the shares at the market open?

     

    because this is very important issue, if we need to buy the short position on the market we will pay again the premium....

     

    Any idea about this? Please call them and let me know, thanks for the favour...
    3 Sep 2009, 12:33 PM Reply Like
  • Chicago Rick
    , contributor
    Comments (33) | Send Message
     
    Danny. Is surprising but perhaps we are over estimating the common sense of the average investor in UNG. I think the dynamic remains that when nat gas goes down sharply there is new influx of people who buy UNG thinking they will catch enormous bounce. probably do not understand that there is large premium, CFTC issues, CIO saying that possibility fund may close and questionable how well this vehicle even tracks nat gas at this juncture. No telling whether would move up on sharp spike upward in futures or not.
    3 Sep 2009, 01:36 PM Reply Like
  • Danny Devito
    , contributor
    Comments (85) | Send Message
     
    Author’s reply » Yes should be like you said, and a bargain to arbitrage again.

     

    Some "hedge fund" may be did the past 2 days the arbitrage and finished the fuel, other will come.

     

    Please, to make more money I need to be sure in the case UNG will close what happen to shorters. You are english speaking native, can you be so gentle to call investor relation in U.s.a. or to find somebody can do it, and to make a simple question? can we hold the short till the day they will liquidate to the NAV price? or the shorters are treated in a different way from who is long in the shares and get the NAV liquidated?

     

    I wouldn't the risk is this in the short, I just want to eliminate my last doubt about the arbitrage and then I will go even harder on it (:-)))

     

    Please help!!!! appreciate in advance if somebody can help, thanks.
    3 Sep 2009, 04:22 PM Reply Like
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