What is the Best wait to invest in natural gas without gas futures? I looked at UNG but there doesn't seem to be a perfect correlation . I think i has some time decay or something. thnak you
,,Investopedia'' Reality : The ,,best way'' would be hand-picking companies from this sector : (Something that would last longer than limited time future contracts) https://finviz.com/screener.ashx?v=111&f=ind_oilgasequipmentservices&o=-marketcap You asked about correlation, - yes it does matter, yet, the only one that matters in the long run, is the one between your skill level and the quality of those picks.
If not UNG, then BOIL which is a leveraged ETF. The inverse is KOLD. You can trade options on UNG or BOIL as well.
Only way is NG, UNG (1.5 months ahead) and BOIL (2.5 months ahead). Otherwise you have to trade producers (AR, RRC, etc.)...
diagonals on Boil are very solid R/R. NG has been pushed underwater. Lowest price in over 10 years. And after massive inflation. Steady.... Steady... Boom.
I trade BOIL vs KOLD.... I sold my kold at 63 and bought boil, had a big win in kold , but a stop in boil. Surprised kold resumed it's uptrend. Looked like it was going to drop back into 50s
I've been underwater in BOIL since December, but it seems dumb to liquidate positions when BOIL is so close to zero, so I hold on. BOIL could be in a saucer formation and KOLD could be due for double-top indicator divergence, so I'm foreseeing a rally about April. In the meantime I'm selling KOLD puts and cheap BOIL puts.
Yeah agree I will reenter boil next week. I'm thinking go long both kold boil, then scale into winner, out of loser, eg pair trade