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Gold/Mining/Energy : Strictly: Oil and Gas Exploration Companies
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To: PuddleGlum who wrote (252)9/11/1999 4:13:00 PM
From: BDR  Read Replies (1) of 318
 
< What's your interest in the index at this point? Are there particular stocks you like/dislike in this arena?>

I am looking at playing the possibility of significant increases in the price of natural gas over the next to six to twelve months (as proposed by more knowledgeable posters than me on the Strictly Drilling thread) and have investigated some small cap exploration and production companies with significant NG exposure such as TMR, RRC, MEXP. However I am thinking that perhaps a better way to play the NG movement would be to buy an index and lessen my exposure to the possibility of an individual company's management's missteps. Liquidity is a factor, too. MEXP, for example, averages less than 100,000 shares a day traded and some days only trades 20-30,000. At $2 and change a share it is hard to build or unload a significant position without moving the market.

I hold some FSNGX (Fidelity Select Natural Gas mutual fund) which provides a solution to some of the issues above. However, if you look at the portfolio of stocks some aren't strictly NG stocks.

Options would offer the opportunity to leverage my position further either with calls or even with a spread short puts/long calls. Just investigating for now.

I looked up XNG and couldn't get a quote through my one online broker. I found that there are options but they are very thinly traded.
options.nasdaq-amex.com
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