UNG is in a wave 4, which means even though it hit my downside target, it could trade in a range before making a new extreme. This expectation needs to be baked into any position strategy. For example, if I go with an option on UNG...I should either go out to Feb22 monthly, or look at a weekly debit spread.
In this case, I'd probably go with the naked monthly option, due to liquidity and relatively cheap option pricing on UNG.
In this case, I'd probably go with the naked monthly option, due to liquidity and relatively cheap option pricing on UNG.