Traders, though, should keep in mind that the summer is winding down and demand for fuel typically declines as the weather cools in the fall. Some analyst are already warning of a potentially new record high natural gas inventory levels in the months ahead.
SEE MORE: Natural Gas ETFs Surge on Smallest Inventory Injection in a Decade
“You will find that September and October are positive 60% and 68% percent of the time, respectively. They are also the best performing months, with average returns of 10.6% and 6.7% respectively,” according to See It Market.
One may utilize inverse or bearish ETF options to hedge bets in the coming months. For instance, the VelocityShares Daily 3x Inverse Natural Gas ETN (NYSEArca: DGAZ) seeks to provide the daily inverse 3x, or -300%, performance of the NYMEX natural gas futures. The ProShares UltraShort Bloomberg Natural Gas (NYSEArca: KOLD) provides the daily inverse 2x, or -200%, performance.
For more information on the natgas market, visit our natural gas category.
United States Natural Gas Fund
