LEVERAGED NAT GAS ETFs

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sundance
Posts: 30
Joined: Tue Dec 15, 2015 1:25 pm

LEVERAGED NAT GAS ETFs

Post by sundance »

Is there a better way to capitalize on the anticipated rise in natural gas price than to buy leveraged nat gas FTFs like BOIL or UGAZ?
dan_s
Posts: 34599
Joined: Fri Apr 23, 2010 8:22 am

Re: LEVERAGED NAT GAS ETFs

Post by dan_s »

IMO the upstream companies with lots of unhedged gas have a lot more upside since they are still trading at very low multiples. If the paradigm shifts to the belief that U.S. gas will continue to trade at prices closer to the prices in Asia & Europe, lots of money will be looking for companies like AR, CRK, CTRA, EQT, RRC and SBOW. EQT is by far the largest producer of North American gas.

For higher upside potential, but with more RISK, look at call options on the large-caps above. Look at strike dates in Q2 2023.

I think the minerals companies in our High Yield Income Portfolio have a lot of upside and they pay very nice dividends. BSM has the most exposure to natural gas.
Dan Steffens
Energy Prospectus Group
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