UNG long setup

28 בינו׳ 2014

UNG is in a wave 4, which means even though it hit my downside target, it could trade in a range before making a new extreme. This expectation needs to be baked into any position strategy. For example, if I go with an option on UNG...I should either go out to Feb22 monthly, or look at a weekly debit spread.

In this case, I'd probably go with the naked monthly option, due to liquidity and relatively cheap option pricing on UNG.