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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (117762)	2/13/2009 1:19:15 PM
From: CommanderCricket	2 Recommendations Read Replies (1) \| Respond to of 206131

S&P, If you really want to trade HOD/HOU, at least short the snot out of um... As long as contango is in place, anyone "long" these etf's are going to get screwed.

To: Salt'n'Peppa who wrote (117762)	2/13/2009 1:58:20 PM
From: cyesp	Respond to of 206131

UNG and USO have nice option premiums, writing covered calls against a long position might be a good way to partially monetize their decay.

To: Salt'n'Peppa who wrote (117762)	2/13/2009 2:04:19 PM
From: couldawoulda	Respond to of 206131

yep - backwardation is the play on these. The contango lessening today is encouraging, but it's probably because these ETF's are done playing with current and front month contracts. I think the play on the ETF's coming up is definitely to go long... finally. In the meantime, HOU lost a whopping $8 crude gain to go along with last months $3 and the prior months $5. Explains why $48 represented the high vs. $147 crude last year. Ugh. Timing, timing. I do also think we get a good EIA report next week, because API had to be saying something about current inventories.