Novice Trade: Southwestern Energy

U.S. Natural Gas Fund (UNG) finally seems to have found some footing. Typically, we see a bid in UNG into the winter; traders may be trying to get out front of a winter move. Plus, with oil prices rallying, there is going to be some love for nat gas as well. I think over the next few weeks we could see a pop in some of the producers.

Southwestern Energy (SWN) is trading at $5.91, and if it pops over $6 we could see a squeeze as this name is a stock that shorts love to short. I can buy the Oct. 13 $6 calls for about $0.27; those are nice. My goal would be to flip them at $0.5-$0.60....8 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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