Seeking Alpha

Natural gas soaring again

  • Natural gas (UNG +6.5%) is flying today amid a brutal winter in much of the country that just won't quit, and ahead of Thursday's supply numbers which are expected to show another near-record draw on storage.
  • There's also bottleneck issues in some of the Northeast, especially curious given the Marcellus production boom is nearby. Production growth from Marcellus reached 4 Bcf/day in 2013, but consumer prices have barely benefited (gone lower), notes the team at Goldman.
  • Related ETFs: UNG, UGAZ, GAZ, DGAZ, BOIL, UNL, KOLD, NAGS, DCNG
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Comments (12)
  • DeepValueLover
    , contributor
    Comments (9815) | Send Message
     
    (UGAZ) is an easy short above $38.
    4 Feb 2014, 01:55 PM Reply Like
  • dalestrnad
    , contributor
    Comments (5) | Send Message
     
    Or you can buy $dgaz - interesting that Market makers aren't letting anyone short $ung right now.
    4 Feb 2014, 06:09 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9815) | Send Message
     
    (DGAZ) decays. No good to hold.
    4 Feb 2014, 08:11 PM Reply Like
  • dalestrnad
    , contributor
    Comments (5) | Send Message
     
    Also interesting, I dont know anyone is able to get $ugaz shorts now either. The market makers got $ung locked at these prices. Only way I see to short $ung right now is buy $Dgaz or play the options market.
    4 Feb 2014, 09:52 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9815) | Send Message
     
    True. My statement was more of a wish than a plan of action.
    (BOIL) puts are available, though, and are surprisingly cheap.
    5 Feb 2014, 01:13 PM Reply Like
  • jsIRA
    , contributor
    Comments (2973) | Send Message
     
    It may see $6.00 next two days. $6.00 is 2009 high.
    4 Feb 2014, 03:04 PM Reply Like
  • dalestrnad
    , contributor
    Comments (5) | Send Message
     
    Too much supply to refill NatGas stores after Cold is done this week.Need a longer Cold storm for NatGas to hit $6.00
    4 Feb 2014, 09:52 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2811) | Send Message
     
    Bottlenecks are because there isnt enough pipe in the ground to move gas to where it needs to go. Theres going to be shortages at peak demand times going up into New England for another 3-5 years at least.
    4 Feb 2014, 03:44 PM Reply Like
  • dalestrnad
    , contributor
    Comments (5) | Send Message
     
    NatGas set up for a Pump&Dump.Institut... don't want to be left holding the bag, hyping the weather etc. Take your profit & run. Natgas is priced by analysts at $4.10btu for year average.
    Whoever is shorting natgas is gonna make big bucks!!!
    4 Feb 2014, 07:19 PM Reply Like
  • Mhkhan_pid@yahoo.com
    , contributor
    Comments (12) | Send Message
     
    Yes whoever shorting NG gonna make money.
    5 Feb 2014, 02:13 AM Reply Like
  • jsIRA
    , contributor
    Comments (2973) | Send Message
     
    One way to play ng price swing is to buy UNG call or put options.

     

    UNG
    Feb $27 call down from $2.00 to $0.75. Spread is only one cent.
    Feb $ 4 put up 300% today from low $0.33 to $0.96 now.
    5 Feb 2014, 02:21 PM Reply Like
  • jsIRA
    , contributor
    Comments (2973) | Send Message
     
    Today high: $5.736 almost touched $6.00.
    5 Feb 2014, 02:23 PM Reply Like
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