ACE Natural Gas - Aug 12, 2019

Below is an illustration trading futures options on Natural Gas.  Our post shows bullish and bearish positions using a combination of call and put options.

Trade Options on Futures

Natural Gas * Directional & Neutral Positions

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Term Structure

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Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report. 
Ask about the Weekly Option's Report for more information or watch our video.

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Contract Size - 10,000 million British thermal units (mmBtu).

Tick Size:  U.S. Dollars and Cents per mmBTU

Trading Hours: Sunday - Friday 6:00 p.m. - 5:00 p.m. (5:00 p.m. - 4:00 p.m. Chicago Time/CT) with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT)

* Tip: Understanding what the numbers mean when looking at Natural Gas prices. The quotation you see is U.S. dollars and cents. Each contract you are buying or selling is 10,000MM btu (British Thermal Units).  A 1 tick move is $10 USD calculated as .001 x 10,000 mmBTU  Think of quotes as dollars per hundred pounds (or cents per pound).

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about Live Cattle futures and options

Natural Gas Charts

Below are weekly & daily charts for reference.

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* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select view image. Be sure to click the back arrow on your browser to go back to the original page.

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Below is a vertical swap. It is a pure directional play with low margin. The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.

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A more aggressive position bearish

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Calendar call to the upside

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