What's happening with natgas

[Pradeep_P1]

@siva @Arockiya_Raja @nithin @VenuMadhav

Dear zerodha

Can someone explain what’s been happening with naturalgas jan contract lately. It’s been going up like crazy, however, cfd natgas and Henry hub prices are stable and not showing such crazy moves. Why mcx jan contracts are hitting upper circuits. Also there are no options contracts for jan natural gas. Is it because of the volatility?

Would love to learn about this

[pavinjoseph]

Natgas options expire a few days before its corresponding futures expiry, Jan series option expired a few days ago and ITM contracts were devolved into futures expiring today.

@Pradeep_P1

Henry hub prices are stable

Jan series gas futures are meant for Feb delivery, so traders are hedging/speculating on what Henry Hub (spot) prices would be next month!

[siva]

@Pradeep_P1

Can someone explain what’s been happening with naturalgas jan contract lately. It’s been going up like crazy,

Can check this, and this it has to do with delivery premium for winter, this keeps happening with nat gas.

[BB789]

@pavinjoseph

Jan series gas futures are meant for Feb delivery

But nat gas contracts are not physically settled at MCX.

[pavinjoseph]

MCX NATURALGAS futures are pegged to NYMEX NG futures.

[dtyxg]

ITM options are Devolves into Futures

List of MCX & NCO Contracts- Settlement type

[siva]

@bharat1080

Does NATGAS options are cash settled or it will be converted to future contract ?

Tomorrow is expiry, my options are OTM.

Can check on info widget which we provide on kite itself for any mcx contract. Click on specs for more info.