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Natural Gas, is a price low forming?

trading ETNs

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#1 flyers&divers

flyers&divers

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Posted 14 May 2020 - 12:36 AM

https://seekingalpha..._content=link-0

 

I like to read the articles of this author on Seeking Alpha.

 

Part of this author's practice when analyzing ETN's is to look into the different methods that fund managers use rolling futures positions and the rolling's effect on price performance of the ETN.

In several other articles it's been pointed out that when rolling all positions only into the unexpired front month there is usually negative roll yield while rolling into several unexpired futures month expirations produces a less negative/dangerous roll yield.

 

It's interesting that in this article the analyst abandons the usual cautious stance of going for the staggered roll ETN for the front rolled futures ETN.

 

 

Regards,

F&D


"Successful trading is more about Sun Tzu then Elliott." F&D

#2 senorBS

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Posted 14 May 2020 - 09:32 AM

https://seekingalpha..._content=link-0

 

I like to read the articles of this author on Seeking Alpha.

 

Part of this author's practice when analyzing ETN's is to look into the different methods that fund managers use rolling futures positions and the rolling's effect on price performance of the ETN.

In several other articles it's been pointed out that when rolling all positions only into the unexpired front month there is usually negative roll yield while rolling into several unexpired futures month expirations produces a less negative/dangerous roll yield.

 

It's interesting that in this article the analyst abandons the usual cautious stance of going for the staggered roll ETN for the front rolled futures ETN.

 

 

Regards,

F&D

Double bottomish perhaps near term 1.60 area but out months like Jan 2021 way higher than it was at March low, I trade AM (Antero midstream). loaded up this morning between 3.40-3.50 FWIW

 

Senor



#3 flyers&divers

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Posted 15 May 2020 - 06:58 AM

While that article argues well for higher prices I actually can't have long term convictions.  Because NG came down so much and premiums are very high I have put on a few UNG buy-writes

which I shift in and out of. If this is the bottom UNG would be called away from me which is OK, if it's not I'll keep working it.

 

If one was a more aggressive trader one should do poor-man's covered calls with futures leaps. There are Natural Gas Futures contracts listed at NYM out to 2036.

I guess the exchange saw the need going that far out for user hedging.

 

Commodity related positions are great for diversification. 

Looks like Corn and Sugar are trying to put in LT bottoms.

 

F&D

 


"Successful trading is more about Sun Tzu then Elliott." F&D