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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Triffin who wrote (123868)9/2/2009 8:43:33 AM
From: GaAs523 Recommendations  Read Replies (1) of 206223
 
Any UNG long out there? Why would one pay someone 20% premium to hold front month gas contract, when you can open a future account? There is even natgas mini' s in Nymex for small investors.

This is like paying 20% fee to our brokerage (etrade, schwab etc ) just to hold our stocks in their custody. This is just plain irrational.

This UNG stupidity proves the following:

1) Efficient market is a myth!
2) There is got to be tons of just plain stupid investors (retail or otherwise) who does not bother to check (e.g. NAV of an ETF) simple things on what they are investing.
3) There is absolutely, positively gross speculation resulting in price distortions in energy commodity markets.

By the way, selling UNG puts is not different than going long UNG at this stupid premium.

Thanks to all who brought this UNG distortion here. Shorted UNG a couple days ago without hedging.
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