at its peak usage, NG is delivered at 4.8 in this March. That's the price that the real utility company is willing to pay for, even for this frigid March!
That sets the up side boundary at 4.8.
With that up side boundary set, Long DGAZ is low risk at this point now we are trading May contract. Who will pay more than 4.8 in May?
I am 75% in and will buy more using my other 25% cash if it dips more.
And, will sell around 3.78.
Sentiment: Strong Buy
Nice uptick in volume here. Trading fast and furious. I entered @ 3.31 and plan to hold until well into the summer. No reason I can see that Nat Gas futures won't head back to $3.50.
good entry point and good strategy!
You're going to sell when DGAZ is $3.78 or NG is $3.78.
I'd prefer a little more than a 5% gain if I am tying up my money. My DGAZ target is $4.20 to $4.40 to sell.
nfpcomp are you still long russia? rsx SBRCY?
It's wishful thinking if you want DGAZ go straight up to 4.2 from here.
I want to sell DGAZ at 3.78.
My entry point is much lower. So it's greater than a 5% gain.
I will buy again at the next dip.