NaughtyPines
Long

LOOKING FOR SEASONALITY -- UNG DEBIT SPREAD

AMEX:UNG   UNITED STATES NATURAL GAS FUND
Depending on where you live, you wouldn't think that winter is fast approaching, but it will come at some point, and with winter comes cold, and with cold comes increased heating of homes ... . Hence, a seasonality play in UNG             comes to mind, particularly with UNG             trading at or near range lows (it's been between 12.25 and 15.25 since late January). Moreover, recent EIA             data suggests a decline in production going forward, which may add to the seasonal boost that natural gas             ordinarily receives in the winter months. I'm going with a January expiration, since previous data suggests that that is when maximum consumption of natural gas             occurs ... .

Here's the idea:

Jan 15 12/13 long call debit spread
Max Profit/BPE: .48 debit/.52 debit
BE: 12.52
POP %: 49%

Notes: You're basically playing one to make one ... .
NaughtyPines
a year ago
Filled at open for a little bit better price -- .52 db. I'll look to take it off at 50% max profit ... .
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