Scott Nations' Natural Gas Trade

On CNBC's "Futures Outlook," Scott Nations said he wants to be a buyer of natural gas. The commodity traded sharply lower on Thursday on the news of increased storage and Nations sees an opportunity to buy.

He wants to buy the January futures contract at $2.60. His price target is $2.85 and he would place a stop loss at $2.50. If the price jumps to his target price, he is going to make a profit of $2,500. If natural gas continues to trade lower and Nations manages to close the trade at $2.50, he is going to lose $1,000.