Share this article:

Natural Gas Prices: “Stealth Buyer” tips his hand

Today's Financial News - Posted November 3, 2009

Turn this clandestine “Shipping News” signal into three shots at gains of 256%, 678%, even, 1,894%… by January 15, 2010!

by Andrew Snyder

Baltimore, MD — TFN: Crude oil prices are hitting new year-to-date records. Gold is setting new all-time records. Commodities are soaring. But with everyone’s attention riveted by the surge in real assets and energy, the possibly most lucrative event in the 2009 market is flying completely under the radar.

I believe this single event could create a triple opportunity. A shot at taking gains of 295%, 678%, and 1,894%, respectively!

You see, a few weeks back, I noticed strange activity in the shipping news.

With no place to unload, several tankers carrying liquefied natural gas (LNG) were suddenly diverted from their scheduled destinations.

A supertanker originally dispatched from Russia sat off the Kuwait coast, idling for nearly a month awaiting orders.

Just when the crew thought a trip to a mid-East port was on the way, the radiophone crackled and the ship was diverted… to the Hazira terminal in India!

Meanwhile, at the exact same time, a ship destined for that same Hazira berth was seen changing its course. It was now headed to the Canary Islands.

It gets even more intriguing…

Because at the same time, the Sohar LNG, another massive tanker filled with natural gas, remained tethered to the ocean floor off of Kuwait, the same anchorage it occupied for weeks. Even a blind man can see… the natural gas market is in utter shambles!

For months, entire fleets of LNG-laden tankers have been turning in all directions looking for buyers in an over-supplied market.

Market veterans who’ve been in this market for decades agree:

Something monumental is about to happen…

The natural gas market is in a state of red alert!

Fresh new 7-year price lows created immense structural pressure! And there are signs that the natural gas market is about to go SUPERNOVA under these incredible market forces.

When it does, those who can read the signals… and those who follow my recommendations… could be in a position to rack up not one, not two, but three triple-digit gains.

Gains as high as 295%, 678%, and 1,894%, respectively!

Market recoil

There’s no doubt in my mind: This is the biggest market malady I’ve seen in my career!

It’s so big and so potentially market-changing, I’ve dedicated a large part of this year to uncovering the inner workings of the ticking time bomb. And I just got confirmation!

It’s as official as it gets in this business.

See, during the week of August 14, an “undisclosed” hedge fund quietly moved into the futures market. They purchased a massive amount of call options. Before anybody realized what had happened, a multi-million dollar bet was on the table. The markets went crazy.

Here’s it in a nutshell: On the surface, it looks like this “stealth buyer” is willing to pay $10 in January — for something selling for just over five bucks today.

This is an outrageous price!

Just think: Natural gas prices just got done bouncing off seven-year lows of $2.69!

Right now, the price of natural gas is at about $5.15 per 1,000 cubic feet.

There’s no way they’re ever going to hit $10!

Or will they?

But what if I told you this move had absolutely nothing to do with betting against the current trend?

What if it was nothing more than smoke and mirrors?

Here’s why:

In early October, Russia’s state gas monopoly Gazprom announced that it plans to cut itself a 10% share of the U.S. natural gas market — by 2014.

Gazprom has a stranglehold on Europe’s natural gas supply. It’s been called the Kremlin’s foreign policy arm. Its revenues are the backbone of the Russian state budget.

It even keeps its own armed forces to secure its gas pipelines. Gazprom aims to control a quarter of the world LNG market by 2020. They’re not messing around!

Reds

The company plans to use liquefied natural gas from its Sakhalin-2 project to supply U.S. customers. Down the road, Gazprom could send LNG from its Arctic Shtokman field to North America.

Given the current levels of natural gas prices, Gazprom’s U.S. strategy is particularly timely. Because U.S. natural gas producers are already struggling to stay in business!

With that natural gas price sitting around $5.15 per 1,000 cubic feet, for many wells, this is at or even below break-even:

It now costs more to pump a cubic foot of natural gas from the ground than you can expect to make on it if you sell it!

And it’s not getting any better: Current supplies are so high, storage space is getting scarce:

According to the Energy Information Administration (EIA), there was 3.899 trillion cubic feet (tcf) of working gas storage capacity in the United States in 2000.

Supply and demand

As of Friday, October 2, working gas in storage was 3.658 trillion cubic feet — that’s dangerously close to full levels!

Even worse for producers, there are huge amounts of gas about to flood the market as the cheaper Marcellus Shale is tapped:

Total production of U.S. gas from shale predicted at year-end 2011 will be nearly eight times greater than at year-end 2006!

With so much supply and producers operating with one foot in bankruptcy, Gazprom’s strategy will involve large-scale buy-ups of distressed domestic producers — preceded by aggressive price wars.

It’s another win-win: The Russians will buy American businesses, distribution networks, and gas inventories at firesale prices!

Good for consumers. And good for the last capitalists operating on American soil by then. (Too bad they’ll be Russian…)

But even without the added pressure from the Russians, North American gas companies are suffering because of recent price declines:

Waste Management Inc., a trash hauler making money on natural gas generated from landfills, expects gas prices to weigh on its third-quarter, per-share earnings by about 4 cents per diluted share.

Trident Resources Corp., a Canadian natural gas explorer, filed for Chapter 11 bankruptcy protection in the U.S., citing a drop in gas prices.

Here’s what’s going to happen:

Natural gas prices are about to implode.

Those tankers I mentioned above were not ping-ponging around the world’s oceans looking for the best buyer.

They were looking for ANY buyer!

Right now, as you read this, there is more natural gas in storage than anytime ever before. There’s 3.658trillion cubic feet of gas stored beneath the continental United States alone.

Natural gas storage inventories are expected to establish a new all-time record.

And industrial demand remains down thanks to the recession.

New investment and capital is being diverted to cockamamie alternative energy schemes.

And hurricane season has been very uneventful so storm-induced bottlenecks have been nonexistent. Overall, supply continues to outpace demand.

But even with all of this excess supply, drillers continue to pump gas at maddening rates.

It’s either that or go belly up.

But what about that rogue that bought the $10.00 calls?

Remember the “undisclosed” hedge fund that placed the bet on $10 natural gas by January?

Won’t they lose a fortune if gas prices implode?

You’d think so.

Unless, of course, he’s one of us!

On the surface — to the thousands of punters and media pundits — it looks like this contrarian trader made a boneheaded move that will cost him millions.

But if you know the world of options like I do, you know his move isn’t how it appears.

Chances are this “foolish” move is a mere sliver of a genius trade.

You see, the rather “small” size of the options contract — the 10,000 contracts cost $5.6 million — indicates that these contracts would be used to protect a massive amount of futures contracts.

Why wouldn’t a hedge fund spend $5.6 million to protect its downside if it most likely puts billions on the line?

A hedge fund with assets most likely measured by tens of billions doesn’t make such a small move just to gain $5 million or so.

It does it to protect a much larger stake.

This means these $10 calls are most likely hedging against a much, much larger bet… AGAINST natural gas prices!

By getting in at just $0.056 per contract, the hedge fund can profit no matter which way the natural gas markets move:

If prices go down, the fund makes a killing.

If prices go up, the “insurance” of the $10 calls kicks in! Every dollar invested could explode to $187.50 if gas goes to $10.50. It’s a win-win situation!

But here’s the core message… our “clandestine signal” we must act on now:

The smart money is betting that natural gas prices will collapse!

“How can I get in on some of that action,” you ask?

Simple.

Follow my lead. I’ve got it all mapped out.

Over the past two months, I have hammered out a three-strike strategy that could result in you taking gains of 295%, 678%, and 1,894%, respectively.

Strike One — Potential gain: 256%

This is a “short” strategy betting on steeply falling prices using a very specific set of put options with January expiration date:

The underlying company will go bust as cash flows fall short if prices dive.

How can I be so sure?

Look at the numbers!

This $300 million company has a whopping $261 million in short-term debt, with a total of $891 million in liabilities. Even if the company shuts down its drilling and rids itself of all variable costs, it still has to pay on its debt obligations. If gas falls below its breakeven, costs will pile up fast and its share price will fall even faster.

Using these put options, with a $1,000 investment you could make $80 for every dime the stock price drops!

Strike Two — Potential gains: 678%

As American storage wells reach full capacity, there will be no demand for LNG domestically. As an LNG importer, this $150 million company will get slammed.

The LNG terminal operator aims to bring in at least 20 of its own cargoes to Sabine this year.

But Sabine Pass, like all terminals on the U.S. Gulf Coast, has received only a trickle of imports this year as low U.S. gas prices have made it unattractive for shippers.

Already, companies like GDF Suez SA are seeking to divert LNG, cargoes from its new Yemen LNG plant to India — and away from the U.S., where demand has ground to a halt.

With domestic supplies bursting at the seams, this LNG importer is looking at tough times! We’ll be recommending shorting the stock using a very specific set of put options with March expiration date! My calculations put possible gains close to 680%!

Strike Three — Potential gains: 1,894% by January 15!

Our previous two “strikes” aimed to leverage the catastrophic situation of U.S.-based LNG producers and importers. But the third part of my strategy is the key:

We’re going to recommend readers purchase put options against United States Natural Gas (UNG), a natural gas ETF that directly traces the prices of natural gas.

It’s supply and demand:

Huge amounts of gas are about to flood the market as the cheaper Marcellus Shale is tapped: Another crucial point is that the total production of U.S. gas from shale predicted at year end 2011 will be nearly eight times greater than at year end 2006.

My latest special report Natural Gas Implosion: Three plays to make right now provides you with the exact details you need to know to implement my strategy.

I tell you exactly which moves to make to take advantage of the ultimate bear market… what specific options to buy now… and of course when to sell them to hand you gains of 256%, 678% or even, 1,894% — possibly as early as mid-January.

That’s right. Kick off the New Year with some of the biggest gains of your life — all thanks to an impending natural gas disaster.

I’m going to give you a lot more to think about, so grab a pencil, but first…

Let me tell you about myself.

My name is Andrew Snyder and I live, breathe and, according to my wife, even dream about the options market.

While others are on their knees praying for gains of 5%, 10% and even 20%, I’m harnessing the power of options for gains like:

87.1% on National City Jan 2.5 calls (NCCAZ) in just 1 trading day…
79.6% on Boeing Feb 55 puts (BANK) in 4 trading days…
50.2% on SPDR Gold Trust Jan 85 puts (KFFMG) in 24 trading days…
71.9% on Under Armour Jan 30 puts (UAMF) in 5 trading days…
40% on C Mar 2.50 calls (CCY) in 4 trading days…
And 83.2% on Altria 2008 Nov 22 17.00 calls (MOKR) in a single day.

Plus, most recently:

56% on Century Aluminum May 2.50 calls (CQIEM) in just 1 trading day…
60% on Ebay May 13 calls (QXBEK) in just 1 trading day…
40.5% on HOG August 17.50 calls in 19 trading days…
PLUS 70% on Dyax April 2.50 calls in 5 trading days.

Plus, in the span of just seven trading days in mid-September we locked in gains of:

40% on Chesapeake Energy calls
18% on FuelTech calls
80% on Cabelas puts
171% on NCI Building System calls
PLUS 42% on Rio Tinto calls!

In just ONE WEEK, we racked up cumulative gains of 351%!

I’m also a vital part of Hot Stock Confidential, the hotshot newsletter that has bagged 67 winners so far this year.

Maybe it’s the MBA.

Maybe it’s the experience I gained as a financial advisor.

Maybe it’s because of my proprietary trade equations.

Or maybe it’s because I dedicated my life to dissecting the derivatives and commodities markets.

Really, it doesn’t matter because I can pick winning options like a fat kid can eat Twinkies.

I know how to make money with options, plain and simple. My track record speaks for itself.

So do my subscribers…

- “Awesome! Great job Mr. Snyder and thanks!”
- “I like what I hear and read from Mr. Snyder”
- “Thanks for the 120% profits this week…!”
- “I have been following your options beta strategies pretty closely. Great job on them!”

I could go on and on. I’ve got a stack of testimonials.

But we’ve got more important topics to discuss… like the impending collapse of the nation’s natural gas industry.

Even though natural gas inventories are at historic highs, nearly everywhere you look there is new drilling taking place.

In my home state of Pennsylvania, a legislature desperate for a new source of revenue recently recommended opening 390,000 more acres of state land to natural gas drilling.

It’s the same situation in West Virginia, where after years of incredible growth, drillers have to keep expanding just to pay their debt. If their wells stop for even a minute, they are losing money.

But what is really interesting and where the big money lies is what will happen when these guys finally fill up the nation’s reserves? What happens when the market screams… NO MAS!

Simple supply and demand economics shows us prices will collapse.

Drillers will essentially be giving away their stockpiles just so they don’t have to burn it off and destroy any shot at profitability.

My research shows it will happen by mid-January.

Better yet, my prediction is backed by a multi-million dollar investment. Remember that rogue hedge fund I mentioned? Don’t forget its investment matures smack dab in the middle of January.

If my word isn’t good enough for you yet, their immense stake should be.

Here’s what I want you to do.

Sign up for TFN Strategic Trader and I’ll spoon feed you my ideas on how to score big gains from an upcoming natural gas implosion.

Plus, I’ll personally email you with exciting and little-known plays directly to your inbox each and every week.

I’ll send you the kind of plays that would have let my friend Jim retire with several lifetimes worth of wealth… if he would have only followed the recommendations.

What’s TFN Strategic Trader?

It’s an options research service, plain and simple.

But it’s a service like no other.

Many options services make things too complicated. Even the lingo scares folks away.

There are covered calls, naked puts, straddles, strikes, alphas, betas, thetas…

But nobody’s asking you to know any of that stuff. Most of the guys on Wall Street don’t even know it… and it shows!

I spent years studying that stuff so you wouldn’t have to. I’ve got the degrees on the wall to prove it.

But even more important than some gilded piece of paper is my word.

Without a man’s word, what does he have?

With TFN Strategic Trader guiding the way, you won’t go alone… ever.

TFN Strategic Trader couldn’t be any more “user friendly.” Here’s how it works.

Expect me to contact you via email a few times a week.

I may be updating you on some important news event. Or one of our recent positions. But most importantly, once a week, you’ll get an alert to enter a new recommended trade.

That means an opportunity to profit from options, not stocks, not ETFs and certainly not mutual funds.

Remember, this is an options research service, plain and simple.

I find the winning ideas, type them up and send them to you… every week.

If you don’t like options, or can’t handle the heat, keep moving. There’s nothing to see here. I’ll fill your spot with somebody that has been waiting in line to get in on a service like this.

But if you do like options and have an appetite for risk, I have something to offer you.

Boy, do I.

Each one of our recommended trades is different, so I can’t promise a constant pattern. We’re shooting from the hip, killing them as they come.

Some weeks, I’ll recommend a put position.

The next week we could tell you to go long with a call, maybe even a covered call strategy.

It doesn’t matter what route we take, as long as you have the guts to play along, I’ll do all the hard work.

In your TFN Strategic Trader email alerts, I’ll outline the best and ultimate way for you to maximize your profit potential.

No options-trading experience required

Remember, to profit from this strategy, you don’t need any knowledge of the options market.

Even if you’re a seasoned pro, like so many of my followers, you’ll absolutely love the valuable information I send.

You won’t get these kind of moneymaking ideas on some Internet message board.

Best of all, when you get a weekly call to action from TFN Strategic Trader in your inbox, you’ll have everything you need for a chance to profit spelled out in simple English.

Here’s just part of a recent sample alert:

“One stock that caught my attention yesterday is Century Aluminum (NYSE:CENX). With its latest earnings announcement due to hit the wires later today, shares have been extremely volatile.”

I finished up with:

“…buy Century Aluminum’s May 2.50 calls (CQIEM).”

It can’t be any simpler.

By the way, that play was worth 55% gains… in a day!

To take advantage of TFN Strategic Trader, all you have to do is log on to an online brokerage account or give them a call.

It takes just two clicks of a mouse… and you don’t need a fancy trading account.

But this unique trading research service is about more than just one intriguing profit opportunity.

There are hundreds more that are perfect candidates for an array of options strategies.

But the only way you’re going to hear about these wealth-generating opportunities is to…

**Sign up to become a Member of TFN Strategic Trader TODAY**

When you do, you’ll instantly become a part of this breakthrough research service and get at least two TFN Strategic Trader alerts from me each week.

	Plus regular Special Reports — each detailing a unique trading strategy or profit opportunity.
	Plus an updated portfolio on a Members-Only website.

In this day and age, where a cup of coffee costs $4, a movie $12, and the average broker has the audacity to take 2% of your net worth in fees and then somehow manage to cut the value of your portfolio in half, you’d expect an elite service like TFN Strategic Trader that has the potential to line your pockets with gains to cost a pretty penny.

But it doesn’t…

Of course, many of our competitors line their pockets by charging exorbitant fees. But we have a different business model.

We like to see you make the money.

First, let me tell you exactly what you’ll get with TFN Strategic Trader…

If you sign up today, I’ll instantly send you my latest Special Report, Natural Gas Implosion: Three plays to make right now

You’ll also get my popular Report: Revolutionary Medicine: Saving lives and getting rich with biotechs.

And you’ll have full access to Options: The ultimate bear slayer — an all-you-need-to-know guide about trading stock options.

You’ll also receive all of the reports my colleagues and I write in the future, plus, a daily TFN eNews alert.

On your exclusive TFN Strategic Trader members-only Web site, all of the alerts, reports and updates are archived for easy reference.

And you can follow the moves of each trade recommendation on our tracking portfolio page.

I’ll GIVE you all of this just for becoming a member of TFN Strategic Trader.

But get this — I’m fully aware that the level of commitment required by this service isn’t for everybody, so I’ll back it with a full 45-day refund.

If, for any reason, you’re not fully satisfied with me or my service, if you don’t make money or you simply don’t like my tone, just call us up and we’ll refund your cash… no questions asked.

Every single dime.

And if after the 45 days, you decide TFN Strategic Trader is not for you, you’ll be pro-rated your expense.

What’s there to lose?

Absolutely nothing.

You literally have nothing to lose, but oh so much to gain.

So what’s it going to run you? Good question.

Special Reserve Offer

How about $1,999 for a year’s worth of the service?

You’d pay that, right? I know people that have.

After all, that’s what nearly every other similar service goes for… if not more.

But I want this to be an offer you can’t refuse… one that makes our competitors say, “How’s he do that?”

That’s why I’m cutting over $700 off the published price and offering a full-year’s subscription, including all my free reports, weekly options play, constant updates, a members-only site and a customized portfolio……for just $1,295 per year.

It’s an incredible deal that you won’t find for even a run-of-the-mill stock-trading service, let alone a comprehensive options research service.

Not ready for a commitment?

I understand.

Instead of signing up for a year, you can get TFN Strategic Trader for just $325 per quarter.

That’s over 80% off the original annual price.

Sweet deal, right?

Oh… it gets better still.

If you hate those constant renewal notices as much as I do, you’ll want to take advantage of monumental savings with our convenient quarterly auto-renewal feature for just $299. We’ll automatically charge your credit card every three months until you tell us to stop.

Bottom line:

I can extend to you one of the greatest offers in my career and get your partnership with TFN Strategic Trader off to a flying start.

As long as you act RIGHT NOW and become a special reserve member you will get…

TFN Strategic Trader, plus all of the analysis, insight, and trading secrets that come with it… plus these three reports:

	*Natural Gas Implosion: Three plays to make right now.*
	*Revolutionary Medicine: Saving lives and getting rich with biotechs.*
	*Options: The ultimate bear slayer*

… All for just $299 per quarter when you sign up for automatic renewal.

Don’t let this opportunity pass you by

Remember, if for any reason, you’re not fully satisfied with me or my service, just call us up and we’ll refund your cash… no questions asked. Every single dime.

And if after the 45 days, you decide TFN Strategic Trader is not for you, you’ll be pro-rated your expense.

It’ll be my job to explain it to my boss, not yours.

If that’s not the deal of the year, I don’t know what is.

Where else will you learn about three ways to take advantage of what will likely be an absolute disaster for the natural gas market?

And where else can you get access to a full-on, no-holds-barred trading research service like TFN Strategic Trader?

I know for a fact, there’s nothing comparable anywhere out there — I looked.

Finally, where else can you get THREE money-making and money-saving reports for the price of one?

And you risk absolutely nothing.

So I ask again, what do you have to lose?

In this market… nothing!

To sign up for the action, simply click here, select the button below or give us a call at 1-877-894-3583.

Best regards,

Andrew Snyder
Chief Strategist
TFN Strategic Trader

Next Article: A $35 million bet pays off for Penn National

Posted by Andrew Snyder · Filed Under Oil and Energy