Natural gas exchange-traded fund (ETF) United States Natural Gas Fund LP (NYSE:UNG) is pulling back from yesterday’s surge, down 4.6% at $17.22 at last glance. UNG jumped 14.5% last session, its largest single-day percentage gain since August 2020, as natural gas prices saw their biggest jump since January 2022.
Expectations of a colder-than-usual January on the East Coast had traders murmuring of volatile storms and a potential “polar vortex,” sending February-dated natural gas up 16.4% to $3.9360 per million British thermal units yesterday. Today, the contract is down 5.3%.
UNG hit a November 1 record low of $12.37. And despite yesterday trading at seven-month highs, the ETF is still down 14.8% since the start of the year. Plus, the fund could be due for a short-term drop on the charts, per its relative strength index (RSI) of 80.7, which sits in “overbought” territory.
Options trader have been betting bullishly. UNG’s 10-day put/call volume ratio of 0.76 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 85% of readings from the last year. So while calls are still winning out on an absolute basis, the options pits have been much more bearish than usual.
Financial Market Newsflash
No financial news published today. Check back later.
