Trading Natural Gas

I have traded CL more than NG, but my interest in the Widowmaker is growing. I am looking to start using KOLD and BOIL for small swing and day trade positions as an experiment, also the QG mini contract.

In terms of acual trades, a couple of weeks ago as an experiment I bought an extremely cheap way Out of The Money $19 February 18 call on UNG. It was a $10 splurge. With my interests in the energy markets, meteorology, and the recent volatility in natural gas it looked to be worth a shot. This past week at one point it was worth about $165, so very occasionally those way OTM plays do work out. Although I am not counting on a 1,500 percent return to be the usual result!
 
Does anybody trade these directly or via options outside of US session hours?
boil hrs day.jpg boil hrs after.jpg
 
Interesting charts! I have considered KOLD post and pre-market but no trades as of yet. One thing I have noticed about BOIL even during RTH is that it can have a wider and more erratic spread compared to KOLD. In terms of option premiums, the spread there with both is wider and more erratic than with UNG, which is actually quite decent.

NG or QG future contracts give you the valuable capacity to exit or enter post/pre RTH with usually tights spreads compared to ETFs.

If using options I will stick to a single call or put for any of the ETFs in this current environment. Options with natural gas can be problematical if there is a massive move overnight and you can't get out until the RTH chaotic options open. Those kinds of quite volatile overnight moves have been much more common with all the European gas price chaos over the last many weeks, especially the Dutch prices. Since I am an early riser I may try to start using QG or possibly KOLD in the European session a few hours before the open of US RTH. If I do so I will report.
 
Do not short NG now. Just stay out. Don't trade it at all. This is exactly the kind of situation where it would trap a lot of big firms that short ng and its gona liquidate all of them with margin calls... if its gonna go up, its going up with surgical precision
 
When you are cought against a surgical up swing, you will have a difficult time exiting your short position, but you gonna loose everything bcause the other margin calls
 
movingaverage said:
When you are cought against a surgical up swing, you will have a difficult time exiting your short position, but you gonna loose everything bcause the other margin calls
More...

simply stop doing swing trading.
And do day trading.
Then you don't have to worry about the big firm things.

Natural Gas futures is one of the best futures for day trading
due to its very wide day range. ave day range is ~ 1%
 
I take it that you’ve never traded NG futures?

movingaverage said:
When you are cought against a surgical up swing, you will have a difficult time exiting your short position, but you gonna loose everything bcause the other margin calls
More...
 
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