In 2005, hedge fund Amaranth booked a profit of $1bn trading Natgas. A year later, it collapsed with $6bn loss as the Widowmaker fell from 16.3 to 4.5. Two years later the price dropped from 14 to 3, a 79% dive. In my previous posts I kept talking about bear flags and shorting NatGas. However I believed that max pain was 3.5, which is 65% from the top - August 2022 - how could it go down further, I thought.
Well, now looking at historical data, I've changed my mind. There's nothing to stop the Widowmaker from going to $1 this year.
Well, now looking at historical data, I've changed my mind. There's nothing to stop the Widowmaker from going to $1 this year.