Natural Gas in my opinion can potentially move lower, last at 2.59 as of this writing. NGJ19 Futures have broken technical’s below 3.00 and 2.75 to move toward 2.10 from this level. Production has passed consumption and data is showing that production levels will stay strong to 2020. The EIA production supply table shows 98.5 BCF/D today vs 88.4 BCF/D last year.
Consider April NGJ19 Natural Gas Puts, the 2.35 Put cost .026 = $260.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
For upside protection the NGJ19 Natural Gas 2.95 Call cost .010 = $100.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
The Strangle would cost .036 = $360.00 of quantifiable risk plus fees and associated costs per transaction to enter the trade.
April NGJ19 Natural Gas OPTIONS trade on April Futures, the Option EXPIRES 3/26/2019 in 46 days.
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