In investing, there's an adage that posits: The best investments are often the ones you don't make.

And isn't that the truth regarding natural gas, or at least the natural gas-based fund, United States Natural Gas Fund LP (UNG)?

Continue reading Pass on Natural Gas Play UNG

Pass on Natural Gas Play UNG originally appeared on BloggingStocks on Sat, 17 Apr 2010 13:40:00 EST. Please see our terms for use of feeds.

Continue reading United States Natural Gas Fund: Stopped-Out for Loss

United States Natural Gas Fund: Stopped-Out for Loss originally appeared on BloggingStocks on Thu, 18 Mar 2010 14:20:00 EST. Please see our terms for use of feeds.

It's a close call, but I'm reiterating my buy rating for the United States Natural Gas Fund (UNG), first recommended on July 13, 2009, at a price of $11.50. Further, the buy call is nuanced, so attention is advised.

First, UNG, currently trading around $10.80, a low-cost way for the typical investor to invest in natural gas as a commodity, is a high-risk play: don't buy UNG if you're a moderate-risk or low-risk investor.

Continue reading United States Natural Gas Fund: A U.S. Economic Recovery Play

United States Natural Gas Fund: A U.S. Economic Recovery Play originally appeared on BloggingStocks on Wed, 06 Jan 2010 17:00:00 EST. Please see our terms for use of feeds.

I'm issuing a Buy for the United States Natural Gas Fund (NYSE: UNG), but there are several qualifiers, so pay attention.

First, UNG, currently trading around $11.50, a low-cost way for the typical investor to invest in natural gas as a commodity, is a high-risk play. Don't Buy UNG if you're a moderate-risk of low-risk investor.

Continue reading A United States Natural Gas Fund play is possible, but it's not for the squeamish

A United States Natural Gas Fund play is possible, but it's not for the squeamish originally appeared on BloggingStocks on Mon, 19 Oct 2009 13:10:00 EST. Please see our terms for use of feeds.

The United States Natural Gas Fund LP (NYSE: UNG) resumed issuing new shares Monday, ending a long drought for the exchange-traded fund (ETF). UNG, which tracks price changes in natural gas, hasn't issued new creation baskets (blocks of 10,000 units) since June, thanks in part to newly enacted position limits on the federal and exchange level.

While it's back to business as usual, traders should still proceed with caution when it comes to this commodity-based fund. UNG warned late Friday that its units are still trading at a premium to its net asset value (NAV), which could spell trouble for investors.

Continue reading Call selling hits U.S. Natural Gas Fund as new share creation resumes

Call selling hits U.S. Natural Gas Fund as new share creation resumes originally appeared on BloggingStocks on Mon, 28 Sep 2009 11:30:00 EST. Please see our terms for use of feeds.

United States Natural Gas Fund (NYSE: UNG) closed at $11.75. The investment objective of UNG is for the changes in percentage terms of the unit's net asset value to reflect the changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana. Natural Gas futures are recently down .45% to 3.743 according to Bloomberg. UNG options were active on September 16 with of 222,361 contracts trading. UNG October option implied volatility of 66 is near its 26-week average according to Track Data.

Financial Select Sector (XLF) overall volatility at 39; 26-week average is 50 according to Track Data.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: United States Natural Gas Fund options active originally appeared on BloggingStocks on Thu, 17 Sep 2009 08:30:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Natural Gas Fund: For now, don't buy

U.S. Natural Gas Fund: For now, don't buy originally appeared on BloggingStocks on Mon, 13 Jul 2009 13:40:00 EST. Please see our terms for use of feeds.