BetaPro Natural Gas Leveraged Daily Bull ETF T.HNU

Question for the traders....

[bassfishing88]

If HNU will continuously go down over the long term, would not shorting this stock pay off in the long term regardless what nat gas does in the short term? TIA

[BobbyBoy]

Perhaps, if you believe the price of nat gas will either hover in its current range or drift lower. If it rises lets say to $3.50 you will be down 50-60%. It is  risky on both sides of the ledger. Storage levels are high in Europe but you must remember they have relatively low storage capbilities and this can change quickly with weather and or geopolitical events. Do believe that we are in

[BobbyBoy]

Perhaps, if you believe the price of nat gas will either hover in its current range or drift lower. If it rises lets say to $3.50 you will be down 50-60%. It is  risky on both sides of the ledger. Storage levels are high in Europe but you must remember they have relatively low storage capbilities and this can change quickly with weather and or geopolitical events. Do believe that we are in

[PabloLafortune]

long term short is the only strategy for HNU. March 13 2023 natgas was the same price as it is today. HNU was $26-27 then.   The underlying commodity is back to where it was 100 days ago meanwhile HNU lost 40% or so!!!!

[BobbyBoy]

Agreed, however this does have the potential to reverse course. I'm not saying it will, but you must be aware that contango goes in both directions. A perfect storm of geopolitical, economic and weather events could move this to $100 in relatively short order. A colder than usual winter, combined with rapid growth in China along with a geopolitical event that limits production etc..... Is this

[BobbyBoy]

$11 up to $16 in the last 3 weeks. 32% gain. We are in the early innings.

[CrazyTrader]

Long Long ago (over decade probably ago) I tried shorting Leveraged ETF commodity stock, can't remember which one, based on the observation that they seem to always go down over the long run, and figuring out that there's a Guarrentee Math Loss..........But my broker wouldn't allow me to hold my short position and forced me to buy back. I never shorted again after that, realizing that

[CrazyTrader]

But now is not the time to short, IMHO.  NatGas prices relatively low.  Plus there's inflation, that alone should push prices up.   Then there's the war.     The potential volitility in price would make it ill-advised to short in an otherwise fairly solid plan. All just my opinion/view/thinking

[PabloLafortune]

Some of twitter posters who post about natgas almost daily have at best little faith in how natural gas futures operates, especially the ETFs (in the US BOIL and UNG). You look at hot weather, improving projected storage, declining/lower rig count, declining completions, flat production for many (AR, EQT and RRC for example) and yet natgas spot prices don't move at all and of course with