UNG Options Trading
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UNG Options Trading

John Carter 12/10/2013

So let's look at our UNG Options Trading Strategy. So UNG here, this thing has been a very, very, steady mover from the lows of around, just below $17.00 to where we are now. And then the question becomes, well is it extended here. Well there's a couple of things we gotta look at here first.

Turn to the Futures

Let's look at the futures because the futures will give us the voodoo lines. Now you can see here, the last tree line it came up to, natural gas traded sideways and then just kind of exploded higher. So as we're coming up to 427 we'll probably do the same thing. But also remember look at the larger time frame. The weekly chart has just triggered long. The last time this happened, we had a pretty decent move here. And then this move here, once it went to a tree line, we didn't have a squeeze here. It just kept on going. So there's that potential here for natural gas which makes it kind of fun. All right.

So how do you manage this?

Well, for natural gas...I did some of the futures contracts here. But the real -- where you can really catch you know kind of a potential 3, 4, 5 baggers that we talked about on Saturday --would be something like this where you know we try to get something for 67 cents and see if this can get to something like you know, 3 or 4 bucks. That would be pretty sweet.

At this point, we'll continue to hold on to it and the question becomes, what happens if this thing just falls? You know, we don't want to give up all these profits. Well, this will be great. I'm looking forward to it.

We're doing the part 2 of the ETF class; it will be this Tuesday, Thursday and Friday. We'll be trading stuff live and we'll be looking at this and FXY which we still have. I don't know, how's that one doing? FXY -- so yeah that one continues to work down so you know, we'll continue to manage that one. And then USO, which we're right at a quiet spot here. And you can see where it's kind of flat from where I got in. But actually looking to add more of this. So we'll be doing this all week and should be good. All right. So it should be a fun week. The markets today -- fairly quiet but natural gas continues to be on the move. YEN continues to be on the move and this should be an interesting week. You guys have a great night and we'll see you at the next update.