2024-04-03 23:19:38 ET
Summary
- The ProShares Ultra Bloomberg Natural Gas ETF provide 200% exposure to near-month natural gas futures.
- BOIL is not suitable for long-term investors due to futures roll decay and volatility decay.
- However, with the arrival of favorable seasonality and a hot summer, speculators may consider BOIL for a seasonal swing trade.
In August, I downgraded the ProShares Ultra Bloomberg Natural Gas ETF ( BOIL ) due to heightened roll decay heading into the winter. Since my downgrade, the BOIL ETF has lost an incredible 80% in value, demonstrating why I do not recommend the BOIL ETF as a long-term investment (Figure 1)....
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BOIL: That Time Of The Year Again, Seasonality Heating Up