Saturday, August 29, 2009

Saturday Rock Blog: Like a Rolling Stone

Disclosure: I own UNG calls.


Anonymous said...

I heard on the radio something about the only natural gas ETF basically is turning into a closed end fund because they will not be creating any more shares, due to the commodity bigwigs grumbling about speculation. And I believe this caused a premium for the ETF.

pythagoruz said...

That is 100% correct. Since the fund managers closed the fund, any shares to be purchased have to come from the outstanding supply of stock. If the fund had remained "open", then the managers would have issued shares to bring down the UNG price to net asset value or "NAV."

pythagoruz said...

More like a rolling pos.