ProShares Trust II – ProShares Ultra Bloomberg Natural Gas Returns against. S&P
| 1 YEAR | 5 YEAR | 5 YEAR ANNUALIZED | SINCE IPO | |
|---|---|---|---|---|
| BOIL | -86.42% | -97.99% | -54.21% | -100% |
| S&P | -9.40% | +49.13% | +8.32% | +256% |
BOIL stock ,It is the Bloomberg Natural Gas Subindex SM is designed to represent the natural gas component in the market for commodities. The index is comprised of futures contracts for natural gas.
Contrary to equity contracts, which grant holders to a perpetual ownership stake in a company commodity futures contracts define the date of delivery for the physical commodity underpinning it. The index evaluates the performance of the commodity futures contracts. And as the date of the contract is due and the index is replaced by a contract with similar ones with more recent expiration dates. This makes the index an “rolling” index.
The index is valued based on the prices of settlement for the underlying contracts. Indexes roll their contracts throughout a period of five consecutive business days beginning at the 6th business day during the month. Every day, around 20% of every futures-related position included in the roll of the month is being rolled.
Gas prices for natural gas are riding an upswing and a pair of exchange-traded funds can help those who have the ice in their veins to profit from the volatility.
As we approach 2023 and beyond, odds favor the continuation of the explosive and implosive price movements as well as it is the case that ProShares Ultra Bloomberg Natural Gas ETF (BOIL) and the ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) give investors the chance to take part in the market that is not for those with weak stomachs.
The funds are short-term leveraged instruments that increase the price movement in near-by NYMEX natural gas natural gas forward contracts. BOIL and KOLD are attempting to double the daily price exchange for the NYMEX futures in active month. BOIL is higher in line in line with the price, while KOLD increases when the natural gas price drops.
The market’s volatility can create many opportunities for traders with a quick mind. But, the wide variance in price is a major problem for investors who prefer to remain passive.
Natural gas prices are just as fluctuating as the fuel is combustible after extraction. In June of 2020 the close U.S. futures price fell to a quarter-century lowest of $1.44 in MMBtu (1 million British Thermal Units). In 2022, the low-to high price range was $6.39 and is 4.4 times higher than lowest price in June.
In 2021, the nearby NYMEX natural gas prices broke free of the bearish trend of lower lows and higher highs which lasted from 2005 to 2020. By 2022, price movement continued to rise on the upward side increasing the price to more than $10 MMBtu in August , before settling down.
