Fabulous Friday – Monday’s Gas Trade Made You $2,000 – You’re Welcome!

Have you been reading us all week?  

If you've been reading us longer than that, you know we LOVE Natural Gas at these low levels.  Well, not so low anymore as Natural Gas Futures (/NG) have jumped 0.20 for the week, which pays $2,000 PER CONTRACT and not only did we feature it on Monday's post but I discussed it in studio with Jill Malandro at Voice of America on Monday afternoon – my trading gift to the World!  

Remember, at Philstockworld, we are FUNDAMENTAL investors who use Options and Futures to both leverage and hedge our positions but beneath all of our trades are sound fundamental principles which guide our selections.  Our premise on Natural Gas was, to me, so obvious, that we made it our trade of the year for 2016 and, as I said in Monday's post:

Keep in mind the Natural Gas ETF (UNG) is our Trade of the Year and it's very rare that you are still able to play our trades of the year this deep into the first quarter but you can still make the following trade:

  • Sell 10 UNG 2018 $5 puts for $1 ($1,000) 
  • Buy 20 UNG 2018 $5 calls for $2.10 ($4,200) 
  • Sell 20 UNG 2018 $9 calls for $0.95 ($1,900)

That puts you into the $8,000 spread for a net of $1,300 in cash, so the potential upside is $8,700.  Your obligation, should UNG be below $5 (now $5.90 with Nat gas at


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