Call selling hits U.S. Natural Gas Fund as new share creation resumes - Elizabeth Harrow

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Call selling hits U.S. Natural Gas Fund as new share creation resumes
Sep 28, 2009 04:30 PM UTC

Elizabeth Harrow

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Symbol	Sentiment	Start	Return	Closed
ETF	n/a
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UNG	n/a

Via BloggingStocks:

Filed under: Options, Commodities

The United States Natural Gas Fund LP (NYSE: UNG) resumed issuing new shares Monday, ending a long drought for the exchange-traded fund (ETF). UNG, which tracks price changes in natural gas, hasn't issued new creation baskets (blocks of 10,000 units) since June, thanks in part to newly enacted position limits on the federal and exchange level.

While it's back to business as usual, traders should still proceed with caution when it comes to this commodity-based fund. UNG warned late Friday that its units are still trading at a premium to its net asset value (NAV), which could spell trouble for investors.

Continue reading Call selling hits U.S. Natural Gas Fund as new share creation resumes

Call selling hits U.S. Natural Gas Fund as new share creation resumes originally appeared on BloggingStocks on Mon, 28 Sep 2009 11:30:00 EST. Please see our terms for use of feeds.

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