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Best Stocks to Play the Natural Gas Market?

Posted on 1/15/20 at 11:21 am
Posted by TDFreak
Dodge Charger Aficionado
Member since Dec 2009
7371 posts
Posted on 1/15/20 at 11:21 am
Natural gas has taken a beating due to the mild winter. I think the sector is cheap right now and a cold snap might give it a goose.

What stocks does the Money Board recommend?
Posted by bayoubengals88
LA
Member since Sep 2007
18945 posts
Posted on 1/15/20 at 11:57 am to
BOIL has become predictable!
Posted by sneakytiger
Member since Oct 2007
2473 posts
Posted on 1/15/20 at 12:13 pm to
Prices are down because you have permian producers dumping free gas into the market. It probably gets worse heading out of the winter.
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26579 posts
Posted on 1/15/20 at 1:09 pm to
Atmos
Posted by TDFreak
Dodge Charger Aficionado
Member since Dec 2009
7371 posts
Posted on 1/15/20 at 1:27 pm to
quote:

Prices are down because you have permian producers dumping free gas into the market. It probably gets worse heading out of the winter.

Agreed. I’m looking short term with the models showing a cold blast coming next week.

But there are some good inverse funds out there (like KOLD) if you want to take the bearish bet.

The month the US gas domes show an unseasonably early uptick in storage volumes, natural gas will probably crater.
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12577 posts
Posted on 1/15/20 at 1:48 pm to
UGAZ hehe
Posted by sneakytiger
Member since Oct 2007
2473 posts
Posted on 1/15/20 at 2:04 pm to
Keep in mind the northeast can basically self supply with the Marcellus so while you might see an uptick in NE spot prices, Henry hub and nymex contracts may not budge with a regional weather event unless it's something extreme like the 2014 polar vortex
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7137 posts
Posted on 1/15/20 at 10:41 pm to
quote:

UGAZ


The best answer!!!!!!!!
Posted by Tpayne99
Da Bayou
Member since Jan 2019
1028 posts
Posted on 1/15/20 at 10:55 pm to
You can buy a Natural Gas future contract. I wouldn’t recommend it though, your losses/gains are unlimited.
Posted by K E V 8 4
Member since Jul 2010
608 posts
Posted on 1/16/20 at 9:30 am to
quote:

You can buy a Natural Gas future contract. I wouldn’t recommend it though, your losses/gains are unlimited.



This statement makes no sense. If you buy a futures contract, say at $2.20, your potential losses are not unlimited, but capped at $22K if nat gas went to zero. Likewise your gains are only unlimited if nat gas price goes to infinity. Was this a failed joke of some type?
Posted by Tpayne99
Da Bayou
Member since Jan 2019
1028 posts
Posted on 1/16/20 at 1:25 pm to
Sorry, your gains are unlimited, but you can only lose 22K on one contract. If a 22K loss on one contract is not unlimited to you, I apologize for the semantics.
Posted by Clint Torres
Member since Oct 2011
2662 posts
Posted on 1/16/20 at 2:36 pm to
I like TELL for LNG but its real potential is 3-5 years from now.
Posted by cwill
Member since Jan 2005
54752 posts
Posted on 1/16/20 at 5:25 pm to
GTFO
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12577 posts
Posted on 1/16/20 at 5:38 pm to
or UNG.
Posted by cave canem
pullarius dominus
Member since Oct 2012
12186 posts
Posted on 1/17/20 at 2:25 am to
quote:

Natural gas has taken a beating due to the mild winter. I think the sector is cheap right now and a cold snap might give it a goose.



Trying to catch a falling knife almost never works out for me, perhaps you will have better luck.
Posted by Samso
nyc
Member since Jun 2013
4730 posts
Posted on 1/17/20 at 8:20 am to
Dude Gas has been down for like several years now. There’s so much over supply that it doesn’t correlate with weather anymore.
This post was edited on 1/17/20 at 8:22 am
Posted by Bob Sacamano
Houston, TX
Member since Oct 2008
5277 posts
Posted on 1/17/20 at 8:49 am to
I’m a gas trader and I would highly recommend studying the market first. Look at production, demand, gas fired power plant burns and LNG send outs. Gas can be extremely volatile.
Posted by cwill
Member since Jan 2005
54752 posts
Posted on 1/17/20 at 10:33 am to
quote:

Dude Gas has been down for like several years now. There’s so much over supply that it doesn’t correlate with weather anymore.



Natty looking for the 1 handle today...that's why the best advice for investing in nat gas at any level is G. T. F. O!

And the glut goes beyond domestic...the world market/LNG is oversupplied too. LNG is trading at fricking $5...exporters have a sweet $3 delta to play with. I don't see how it works.
Posted by K E V 8 4
Member since Jul 2010
608 posts
Posted on 1/17/20 at 1:44 pm to
Dude - no worries - just admit the mistake. You think it plausible that gas goes to zero at HH? Or even 1.00? Let's take an extreme case and say that winter prompt gas goes to $1.50. Then your loss is $7K per contract. A lot of money to be sure, but not "unlimited." I could argue that the gain is not unlimited either, but you get the point.
Posted by hubertcumberdale
Member since Nov 2009
6511 posts
Posted on 1/17/20 at 2:36 pm to
UGAZ
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