In this segment Pete dives in to the natural gas markets to dissect the current environment and what to look for going forward.
He focuses on 5 main points:
- The current price level being the lowest since 1998
- Inventories indicating extremely bearish sentiment
- Continued growth in open interest
- Production is currently uneconomic right now
- The potential future volatility.
Pete analyzes all these factors before looking at a potential trade with a calendar spread and a short put.