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He is not trading anymore actively. I suspect he has long term positions he sits on. I do know some of his traders in Miami and they use them.

No he didn't mention number lines.

Well full disclaimer, I have no idea what his intentions are so this is just me offering one man's opinion. Having said that, Mark is retired and lives in South Florida (Miami). He has had a long standing relationship with CQG for decades. I know he has traders that use their platform. I...

How do you mean?

Any questions? :)

Thanks for the reminder!

Storage cost is privately negotiated.

No, the storage cost varies by month. Obviously in the winter it's the highest since storage is more valuable in December then in say July.

Also getting clocked are equity names with nat gas exposure. Most are down 20% to 30% in the last week or two. Ugly stuff.

The slaughter in natural gas continues going into delivery. I think some long funds got completely molested on this. Do not be long UNG. The roll yield is horrific right now and will be for the next 3 months. This is one of the biggest massacres in a while and they are calling for...

Winter storage is very valuable due to the volatility in prices. Owning storage or owning capacity is a real option and that option is expensive between nov and mar.

The difference is the cost of storage. In other words, you could buy the Nov gas now at 2.75 and sell forward at 3.15 and lock in a .40 profit on the futures but then you have to secure storage and the implied market rate for storage is that .40 difference. If you can buy storage for less then...

Thanks OneFive. I suspect the bid in 2018 is LNG related. I know LNG exports are expected to increase substantially in 2018 and beyond which has to be factored into the supply situation. We have record supply in storage right now and over supply sooner or later tends to lead to tight markets...

Thanks guys. Meanwhile the slaughter continues in natural gas.

So this hopefully shows you guys the benefits of why trading energy spreads vs the outright can allow one a smoother payoff structure and in the case of HJ, owning upside curvature with a better risk adjusted payoff then sitting through the noise of front month futures. In the last week front...

And last but not least, we have the full enchilada. Once again, front month prices are sorted from low to high and you see the corresponding price in HJ. This time note we are graphing the actual price of HJ and not the daily change. So you can see how at low prices of nat gas between say...

This next graph is the same information but this time not sorted from low to high. It shows gas prices in proper order of time with the orange spikes being the daily prices changes for front month futures and the grey bars are the daily price changes for HJ. Notice how when prices are high...

The next graph shows the exact same information from jan 2014 to about oct 2016 this time with the daily absolute price changes in HJ as a function of the front month natural gas futures price. Something should immediately stick out to you here. At low levels of futures prices, the HJ spread...

This first curve shows us the volatility associated with front month nat gas futures. To make this data more discernible, I took the futures prices since jan 2014 along with each day's daily corresponding volatility and then sorted the prices from left to right or low to high. This allows one...