- Ripmany
- 01-28-2023, 01:52 PM
What do you think of natural gas ETF? Boil and ung natural gas is way down and with gasoline at or near all time high you would think it going to be use more. However almost all commity future ETF suck long term.
- Chung Tran
- 01-28-2023, 10:22 PM
Too bad you don't have premium access. I discussed Natural Gas some 10 days ago in my Dallas Men's Lounge thread.
You are right, prices have fallen precipitiously. Boil is under $10, after hitting $140 last June. I traded it twice in the past month, for short term gains. But those were ''bounce'' gains, and if you hold BOIL, there is a time decay factor that hampers your return. It has a Futures component, so contagion risk is high. UNG is a better way to play Natural Gas, but it is risky, too. EQT or LNG are the best way to bet on a rebound, but I don't see prices coming back soon. Their rise was mostly about a cold European winter, that didn't materialize.
Commodoties are difficult, but I made big money in Freeport McMoran, in 2021, by way of call options. Environment was much easier then. If a hard recession materializes later this year, commodoties should set up well again.
You are right, prices have fallen precipitiously. Boil is under $10, after hitting $140 last June. I traded it twice in the past month, for short term gains. But those were ''bounce'' gains, and if you hold BOIL, there is a time decay factor that hampers your return. It has a Futures component, so contagion risk is high. UNG is a better way to play Natural Gas, but it is risky, too. EQT or LNG are the best way to bet on a rebound, but I don't see prices coming back soon. Their rise was mostly about a cold European winter, that didn't materialize.
Commodoties are difficult, but I made big money in Freeport McMoran, in 2021, by way of call options. Environment was much easier then. If a hard recession materializes later this year, commodoties should set up well again.