Trading Natural Gas With The KOLD ETF Product

(9min)

Summary

  • Natural gas prices are highly seasonal, with peaks during winter heating demand and potential rallies in summer due to air-conditioning needs.
  • Current high inventory levels and the incoming administration's pledge to increase oil and gas output suggest limited upside for natural gas prices.
  • The ProShares UltraShort Bloomberg Natural Gas ETF offers a leveraged bearish position on natural gas futures, suitable for short-term trades.
  • KOLD's leverage and trading hours limitations make it a risky investment, appropriate only for short-term bearish trades on natural gas futures.
  • Looking for more investing ideas like this one? Get them exclusively at Hecht Commodity Report. Learn More »

Blue gas flame of the stove close-up

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When producers extract natural gas from the earth's crust, it is highly combustible. The volatile gas trades (NG1:COM) on the Chicago Mercantile Exchange's NYMEX division alongside crude oil and oil products. Natural gas futures and futures options began trading

The Hecht Commodity Report is one of the most comprehensive commodities reports available today from a top-ranked author in commodities, forex, and precious metals. My weekly report covers the market movements of over 29 different commodities and provides bullish, bearish, and neutral calls, directional trading recommendations, and actionable ideas for traders and investors. I am offering a free trial and discount to new subscribers for a limited time.

This article was written by

30.05K Followers

Andrew Hecht is a 35-year Wall Street veteran covering commodities and precious metals.

He runs the investing group The Hecht Commodity Report, one of the most comprehensive commodities services available. It covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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