Natural gas has been the choice among exchange traded fund (ETF) investors, as call options have been put into place in anticipation of the prices going up.
Doris Frankel for Reuters reports that shares of United States Natural Gas (UNG) saw option investors betting that natural gas prices will spike up within the next few months.
The ETF, which tracks natural gas prices through futures and forward contracts, posted a 52-week low of $29.02 on Friday. The ETF has shed 54% from its July high.
Investors often turn to equity call options allowing them to buy the company’s stock at a given price and time, to speculate on share price appreciation.
Over in New York, officials are exploring whether it is possible to drill safely for natural gas without seeping into water supplies.