Big Dog's Boom Boom Room Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: tom pope who wrote (123740)	8/29/2009 5:14:21 PM
From: Ed Ajootian	1 Recommendation Read Replies (2) of 206223

Tom, thanks, the fact that UNG is not shortable in many brokerage accounts helps explain why the premium keeps rising. Its now over 19% and counting. Given that the fund is no longer achieving its objective, it will be interesting to see at what point (if ever) the board of directors of the fund decide to just close it down. Either that or re-define its investment objectives. From its web site, UNG's stated objective is as follows: "The United States Natural Gas Fund LP (UNG) is an exchange traded security that is designed to track in percentage terms the movements of natural gas prices." For those who can't short the stock but are looking at a way to create a "synthetic" short position, one thing to consider is to buy a put option that is deeply in the money. For example, on Friday the October $17 puts closed at $6.25. With the stock closing at $11.13, this represents a modest premium over the stock (about 3%).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next