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Potential US Natural Gas (UNG) Trade Has 7.41% Downside Protection

Mar 06, 2018 ( via COMTEX) --

A covered call identified by's patented algorithms on US Natural Gas (<a href="">UNG</a>) could yield about 5.46% (14.66% annualized, for comparison purposes only) in 136 days. Pair a long position in the stock with the Jul 20, 2018 $22 call for a net debit of about $20.85. This position also has 7.41% downside protection. For a less expensive, but riskier, option consider a diagonal spread using the same sold call and a long position in the Jan 18, 2019 $17 call for a net debit of about $4.53. While this trade has a higher yield at 10.37%, the downside protection falls to 7.41%. US Natural Gas closed at $22.53 Mar 5, 2018. Technical indicators for UNG are bearish and support and resistance have been about $22.26 and $22.76, respectively.A

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