Can UGAZ Recover? Comparing UGAZ and Natural Gas
已更新
A serious look at what to expect from UGAZ if natural gas changes it's trend and starts a bull rally. Many are stuck in UGAZ since 2019, natural gas is down 47% and UGAZ 89% from the November high. UGAZ is not down 3 times natural gas due to the rebalancing that occurs, unless there is a decline of more then 33% in one day it is not possible for UGAZ to go to $0.
I must warn that this is hypothetical and to show the problem with waiting for UGAZ to recover. If natural gas breaks to new lows the percent UGAZ goes up will remain about the same but it will be from a lower dollar value.
It is likely at some point in the next 1-2 years natural gas makes it back to $2.90 from the current lows that will be about 90%. Since UGAZ moves 3 times natural gas that is about 270% but due to the decay UGAZ experiences it is more like to go up a maximum of 180%.
Generously using the 270% that is about $80. if we use the more realistic 180% that is $62. These number are well below what most would have bought UGAZ for in 2019.
UGAZ is an extremely risky investing product and unless you are very experienced and completely understand how it works you should not consider investing in it.
See charts below for potential downside and upside going forward.
I must warn that this is hypothetical and to show the problem with waiting for UGAZ to recover. If natural gas breaks to new lows the percent UGAZ goes up will remain about the same but it will be from a lower dollar value.
It is likely at some point in the next 1-2 years natural gas makes it back to $2.90 from the current lows that will be about 90%. Since UGAZ moves 3 times natural gas that is about 270% but due to the decay UGAZ experiences it is more like to go up a maximum of 180%.
Generously using the 270% that is about $80. if we use the more realistic 180% that is $62. These number are well below what most would have bought UGAZ for in 2019.
UGAZ is an extremely risky investing product and unless you are very experienced and completely understand how it works you should not consider investing in it.
See charts below for potential downside and upside going forward.
注释
I made a video based on this chart in hopes of helping people stuck in a UGAZ loss.youtu.be/2CXyoLPF7is
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