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- Special Report: Update re NG October January spread
Overview
NG V5/F6 Trade Call – Update
Bearish call from June 25th played out well — spread broke through initial support cleanly.
Currently seeing bullish divergence at lower levels, which may spark a short-term bounce.
Broader setup still favors further downside unless we get a sharp reversal.
If the spread breaks lower again with impulsive momentum, could be a good spot to trim or manage risk.
Spread has moved 9 cents lower since the original bearish setup was flagged.
Additionally, in the LN options on the CME, 3,000 contracts of the October–January $-1.00 call were sold against buying of the $-1.50 put at a cost of 4.1 cents to the put buyer [as was mentioned in our morning report].
Original Call Highlights (6/25):
Bearish engulfing candle on June 20th after a failed breakout above the upper Bollinger Band.
Early June rally cleared oversold conditions, giving room for more downside.
Options sentiment aligned — large OI in NG CSO V/F -1.50 put.
Initial downside target: -1.30
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