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Monday, December 3, 2007

February Natural Gas Call Options ...

Here are some of my thoughts on a call option for this market . . .

1) After November retracement, a very predictable seasonal upmove. Not strong in terms of 'size' of the move, but this seasonal up move tends to happen for the first weeks of December whether looking at the data for the 5, 15, or 17 year pattern.

2) Agrees with the larger mid-term trend. Not cool that it's near resistance, but with the recent upmove, the market could definitely have another upswing before succumbing to this sort of channel we have going on for the last 1 year +

3) Agrees with how I'm reading the Commercials position. The seasonal + COT positions are what I like to see in addition, such as this one.

Just pricing options at this point, and seeing how I could *possibly* play it . . .

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This is not being placed in the $500 Challenge accounts, but my other, regular accounts. This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment advisor, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The $500.00 challenge account is run for the education of other traders

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