Buy Calls on Natural Gas, Mark Newton Says

The video discusses the current state of commodities, highlighting the Bloomberg Commodity Index's rise due to a weaker dollar and Libyan tensions. Mark Newton from Newton Advisors provides insights into the divergence between stocks and commodities, suggesting a potential dollar downtrend. He outlines a trading strategy for natural gas futures, emphasizing the use of call options due to low implied volatility. The video concludes with a detailed options strategy for natural gas futures, focusing on buying June 270 calls.

What factor is contributing to the rise in the Bloomberg Commodity Index?

• Stable stock market

• Stronger dollar

• Libyan tensions

• Decreasing oil prices

According to Mark Newton, what is necessary for commodities to outperform?

• A rise in the stock market

• Stable geopolitical conditions

• A significant drop in the dollar

• Increased oil production

What technical sign indicates a potential recovery in natural gas prices?

• Decrease in stock market volatility

• Cooler weather forecasts

• Stable commodity index

• Increase in oil prices

Why does Mark Newton suggest using call options for natural gas?

• High natural gas prices

• Stable natural gas prices

• Low implied volatility

• High implied volatility

What is the main mistake traders make when buying call options, according to Mark Newton?

• Buying too far out of the money

• Buying too close to expiration

• Ignoring geopolitical factors

• Not considering market trends