If you check out the futures contracts, they are actually in backwardation at the moment. However the march contract has been dropping much faster than the April and May, so I think by the time UNG is rolled to April, there won't be much difference. Backwardation in theory would decrease the drop in UNG compared to the drop in natural gas (opposite of contango). With that being said I own $22 July puts in (part of a put calendar with Feb) in my non tax advantaged account, and $24 Jan 2015 puts in my IRAs. I expect natural gas will be back in contango by April and under $3.8 and ung will be under $17 by July.
Some more stuff I just can't make up without a lot more effort then I want to right now
Acquired 09/26/2013 -200.000 $29.606 $2.266 #$%$921.20 -$453.20 -8.29% -$2,893.21 -95.55% $15.14 $3,027.99
Short 05/20/2013 -300.000 $29.606 $2.266 -$8,881.80 -$679.80 -8.29% +$476.04 +5.09% $31.19 $9,357.84
Short 05/20/2013 -750.000 $29.606 $2.266 -$22,204.50 -$1,699.50 -8.29% +$1,037.02 +4.46% $30.99 $23,241.52
Short 05/10/2013 -400.000 $29.606 $2.266 -$11,842.40 -$906.40 -8.29% -$549.73 -4.87% $28.23 $11,292.67
Short 05/08/2013 -293.000 $29.606 $2.266 -$8,674.56
Fidelity. I'll try to copy and paste exactly what is on my screen. Symbol: Populates the Quote Information frame.
Find Symbol UGAZ
Action: Press Alt plus down arrow to open dropdown.
Hard to Borrow
Available to Short: 61,732
Est. Annual Interest Rate: 5.000%
I'll also copy what is in my open position field
CREDIT SUISSE NASSAU BRH VELOCITY SHS 3X LONG NAT GAS ETN LK (Short)
-1,943.000 $29.430 $2.09 -$57,182.49
I have maintained short positions in both UGAZ and DGAZ. For longer term seasonal moves, I believe It is better to short them than own them because of their decay. It costs 5% annually to maintain the position since they are "Hard to Borrow". According to my screen yesterday there were over 10,000 of each available to short. Even when it has gotten down to 0 to short, I have never had mine covered by my broker. Speaking of this, I have a margin call to make because I am short a lot of UGAZ right now :-)
I'll admit I am a new investor to Whitewave. I have been looking for an organic supplier for my portfolio but was looking for something that Wallstreet maybe hadn't noticed yet. A couple months back I noticed a whole bunch of new organic products at my local Walmart, under the Earthbound Farms brands. so this is why I have finally chosen Whitewave over other organic suppliers. I'm hoping this is not just a local phenomenon or a trial of some sort, does any one else notice that these products have taken off at your local walmart as well?
Sorry, I said it exaclty backwards. There was an increase in Natural gas futures after the futures closed on 1/9. This was reflected in the ETF on 1/9 (it didn't drop as much as it should have on 1/9, if it was following the futures closing price). On 1/10 in the AM when the futures were flat, UNG was still in the red because of what happened on 1/9 after futures close.
Natural gas futures close at 14:30 eastern, ETF's don't close until 16:00. There was a drop in the futures after the futures closed on 1/9. This drop was reflected in the ETF on 1/9 but not in the futures price until 1/10.
I wish they had used Core earnings (rather than "adjusted earnings") in their investor presentations prior to 3rd quarter. I think It would have helped us know when the bottom in the dividend would come. Core earnings have been hovering around $0.3 for over a year.