Are Natural Gas Prices Set To Rebound? 

Dividend Investing
by Jay Soloff
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Natural gas prices have been in a significant down trend since the middle of last year. A popular method of trading natural gas, the United States Natural Gas Fund (UNG) has gone from a high of over $30 to 52-week lows of around $6.50. However, a large options spread could suggest gas prices are set to rebound in the second half of this year. A trader bought a call spread 15,000 times that will profit if UNG is substantially higher by October expiration. 

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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