27 Oct

Will Natural Gas Remain above $3 Next Week?

WRITTEN BY Rabindra Samanta

Natural gas’s implied volatility

On October 26, natural gas (UNG)(BOIL) futures’ implied volatility was at 38.3%—3.4% above the 15-day average.

Will Natural Gas Remain above $3 Next Week?

Usually, natural gas (GASL)(GASX) futures and gas’s implied volatility are inversely related. On March 3, 2016, the implied volatility was at 53.8% and natural gas futures were at their 17-year lowest closing price. Between March 3, 2016, and October 26, 2017, natural gas futures rose 76.3% while implied volatility fell 28.8%.

Next-seven-day price range

With a probability of 68%, natural gas active futures could close between $2.89 and $3.21 per MMBtu (million British thermal units) in the next seven days, given natural gas’s implied volatility of 38.3%. In this model, prices are normally distributed with a standard deviation of one.

On October 26, natural gas December futures closed at $3.05 per MMBtu. So there’s a possibility that US natural gas futures could fall below the $3 mark, which could negatively impact ETFs like the United States Natural Gas Fund LP (UNG), the ProShares Ultra Bloomberg Natural Gas (BOIL), and the First Trust ISE-Revere Natural Gas ETF (FCG). These ETFs are meant to track natural gas futures.

For more updates on natural gas prices, see Are Natural Gas Prices Set to Rise?

Latest articles

20 Jun

Will Refiners’ Earnings Plunge in 2019?

WRITTEN BY Maitali Ramkumar

Wall Street analysts expect refining firms' earnings to fall in 2019. Delek US Holdings (DK) and Valero Energy’s (VLO) earnings are estimated to fall less than 10% in 2019. However, the EPS of Marathon Petroleum (MPC), HollyFrontier (HFC), and Phillips 66 (PSX) are expected to fall 20%–40% this year.

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.

This morning before the market opened, Tesla (TSLA) was trading on a negative note despite a sharp rise in index futures. As of 9:10 AM ET, Tesla stock had fallen 1.2% in the pre-market session to $234.74 after Goldman Sachs cut the target price on the company by about 21%.

The US-China trade war has already given a scare to Apple’s (AAPL) investors vis-à-vis the possibility of a 25% tariff on Apple goods being imported from its Chinese facilities. As a result, Apple might be considering shifting its plants out of China.

Yesterday, Greenlane Holdings (GNLN) fell a whopping 17.1%. The stock has now fallen 28% this month, and it hit its all-time low yesterday. Greenlane Holdings listed in April and priced its IPO at $17 per share. However, since the stock surged more than 25% after its listing, it has been a sorry story for Greenlane Holdings investors.