I'm going to trade the stock symbol UNG for natural gas. Looks like it's set to take off. The 30 day EMA looks like it's baselining. Higher lows have been made from May to June. The RSI is about to turn bullish. MACD is about to turn upwards and the slow stochastics look like it's about to turn upwards as well.
So the idea is to sell the 14 July put strike and buy the 13 July put strike, this is a short term play of 3 weeks. This is a bull put credit spread. You gain a credit depending on how many contracts you buy. You get to keep the credit if UNG is or above 14 when it expires. Looking at this graph I'm willing to bet that it is going to be above 14. Looks like a pretty good bet to me.
We'll see in a few weeks if I'm right! The above at present will result in a 30% profit based on the margin required, which is pretty good!
