Implied volatility

On January 11, 2018, natural gas’s implied volatility was 49.1%. That’s 7% above its 15-day average. That same day, natural gas implied volatility surged 13.4%, and natural gas prices rose 6.1%. Often, sharp changes in asset prices increase their implied volatility.

Is $3.30 Possible for Natural Gas Next Week?

Natural gas prices

There is a 68% chance that natural gas (GASL) (GASX) futures could close between $2.87 and $3.30 per MMBtu (million British thermal unit) until January 18, 2018. That price assumption is based on a normal distribution of prices. The implied volatility for this price range is 49.1%.

Natural gas prices closed at $3.08 per MMBtu (million British thermal units) on January 11, 2018, which was 2.8% above the psychologically important level of $3. A further upside in natural gas prices could benefit ETFs such as the United States Natural Gas ETF (UNG), the ProShares Ultra Bloomberg Natural Gas (BOIL), and the First Trust ISE-Revere Natural Gas ETF (FCG) since they invest in natural gas.

Latest articles

Last week (ended August 16) was rough for Canopy Growth (WEED)(CGC) stock. It fell about 14% after the company's fiscal 2020 first-quarter earnings report.

Apple shares rose close to 3% in early hour trading on Monday. So, why is Apple stock trading higher? The market sentiment might have turned positive.

Huawei plans to launch its own mapping service as soon as this October. But Huawei’s Map Kit will initially not be a consumer mapping service.

Ford stock fell 5.2% last week. The fall extended the stock’s decline to 13.3% since its second-quarter results on July 24.

In April, Amazon announced its plan to transform its free two-day shipping program to a free one-day shipping program for its Prime customers.

Cannabis companies face regulatory challenges. Recently, CannTrust (CTST) didn't comply with Health Canada’s regulations.