UNG Contango

[greg25]

Hi all

Let me ask you a question... how can we benefit from the UNG contango ? I know the fundamental reason, I know the problem of the roll ower and the fees, but I would like to benefit from this till the contangno exists, and is so high !!!

Thanks a lot

greg

 

[DionysusToast]

UNG is a commodity ETF and it will suffer from the effects of contango. There is no contango on UNG as it's not a futures contract. It suffers because it has to roll over into a higher priced futures contract. You cannot benefit from contango on UNG but you can from the underlying futures.

To benefit from contango - lease a few billion cubic litres of storage capacity.

 

[gooseman]

i've got a couple of old lemonade bottles you can use

 

[intradaybill]

i've got a couple of old lemonade bottles you can use

Good answer

 

[DionysusToast]

i've got a couple of old lemonade bottles you can use

How dpo you propose getting gas into a Lemonade bottle & convincing it to stay in there whilst you are screwing the top on ?

 

[greg25]

UNG is a commodity ETF and it will suffer from the effects of contango. There is no contango on UNG as it's not a futures contract. It suffers because it has to roll over into a higher priced futures contract. You cannot benefit from contango on UNG but you can from the underlying futures.

To benefit from contango - lease a few billion cubic litres of storage capacity.

Thanks

I going to ask my girlfriend if she let me to deposit some NG in one of the room we don not use... thanks for the lemonate botteles... may be i will need them... !!!!!!