Quote from CET:
You are at the mercy of the front month contract. Higher winter prices are already priced in the futures, so UNG may or may not move. Time will tell how your bet pays off.
Quote from PAPA ROACH:
Just for the sake of a better investment in my opinion, let's take the $102,000 of money that 8,000 shares of UNG represents and put it in these.
$34,000= 1,589 shares of CHK $21.40
$34,000= 1,433 shares of HK at $23.72
$34,000= 1,003 shares of STR at $33.88
These will trade with a bull market in natty, AND collect the forward curve. UNG loses on contango and will not make a cent in the major spread between Sep and Jan.
We will compare these investments on your timetable.