Trade Of The Week: UNG

Options Portfolio Manager – Investors Alley • Oct 4, 2021 at 6:53 AM EDT

There’s been a lot of unusual action in United States Natural Gas (UNG) recently.

The natural gas ETF was down 6.5% one-day last week but has gained over 100% for the year due to global supply shortages.

On the big down day, 58% of the 46,000 options traded were calls, which suggests some traders are looking for a bounce back.

One interesting trade from the day was a block of covered calls, where the trader purchased the stock while simultaneously selling out-of-the-money calls that expire in February of 2022.

Video Length: 00:05:19

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