3. The Natural Gas Spread Trade with Options
The previous section discussed one way a natural gas futures trader can engage in a calendar spread trade using natural gas futures contracts on the NYMEX. In addition to this, a trader could use NYMEX natural gas options, which are options whose value depends on the underlying natural gas futures contract. There are both call and put options and they are available for selling or purchasing.16 Thus, the trader could also make a calendar spread trade using options.