KOLD - Trading Natural Gas With The BOIL And KOLD ETFs
2024-06-11 12:49:35 ET
Summary
- U.S. NYMEX natural gas futures experienced an +85% decline from August 2022 to March 2024, leading to an overabundance of short positions.
- Elevated open interest likely caused a rally in natural gas prices, followed by a decline as speculative positions were closed.
- Factors such as the upcoming cooling season, U.S. energy policy, and the war in Europe could lead to increased volatility in the natural gas futures market.
- KOLD is the leveraged bearish natural gas ETF, while BOIL is its bullish counterpart.
After trading at over $10 per MMBtu in August 2022 for the first time since 2008, U.S. NYMEX natural gas futures plunged, reaching a $1.481 per MMBtu low in March 2024 at the end of the 2023/2024 peak demand season. The +85% decline caused an overabundance of short positions in the natural gas futures market....
Trading Natural Gas With The BOIL And KOLD ETFs