Bearish Natural gas spread
UNG, the etf for natural gas is trading near highs not seen since the middle of last winter. A short term bearish butterfly looks interesting here to take advantage of a pullback that may be coming. As I write this, UNG is trading around $26.60. I am looking to place the trade below at a debit of around $1.30 per contract. Looking to close the trade at either a 10% profit or a 10% loss. Looking for UNG to decline to the $25 to $26 area in the short term.
Nov 2nd expiration:
Buy one 28 put
Sell two 25 puts
Buy one 22 put
Mark Fenton
mark@sheridanmentoring.com
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