NG October November December butterfly 8-6-2025

Overview

The double index roll in NG futures is starting tomorrow. That will see funds roll longs from the front month (September) to the third month's contract (November).

The buying of the November futures versus the September selling that will occur, we believe may well lead to a shrinking of the October November December NG butterfly.

The butterfly widened recently to a high of 23.8 cents. The high for the butterfly basis the current 2025 contracts is higher than any seen in the prior 4 years ( other than a spike at expiration in  the past 2 years).
Technically momentum for the butterfly has turned negative since seeing the peak on July 29. First support below for the fly is seen at the 19 cent area, then at the 17.5 cent area.

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Disclaimer

This article and its contents are provided for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any commodity, futures contract, option contract, or other transaction. Although any statements of fact have been obtained from and are based on sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed.

Commodity trading involves risks, and you should fully understand those risks prior to trading. Liquidity Energy LLC and its affiliates assume no liability for the use of any information contained herein. Neither the information nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any opinions expressed herein are subject to change without notice, are that of the individual, and not necessarily the opinion of Liquidity Energy LLC