I am shocked, just shocked that winter is coming.
Can you believe it? Why didn’t any one tell me, or the naïve bears that continue to write off natural gas futures, even though said futures rise and run when winter approaches?
Next you’ll tell me there are warm months of the year and that natural gas has a tendency to pull back, too.
Jeez…
Knowing that winter was months away, we began buying UNG and the UNG January 21 calls in July 2014. It was down too much, too soon… and winter was just around the corner.
As usual, though, the Street ignored the oversold conditions in UNG… and forgot that it gets cold outside in the wintertime.
Today, as UNG nears $23 a share, we’re showing a 10% gain on the underlying UNG stock, and a 38% gain on the UNG January 21 call. Consider closing half of both for right now. As it gets colder outside, UNG will rise even more.
Ian L. Cooper
Inside Value Trader