UNG had risen sharply in recent days, only to drop off a cliff today. This pattern, and volatility, are quite common with UNG.
UNG performing rollover of its contracts for 4 days every month. Initially, this was all done in a single day, but then UNG grew so large that it itself was affecting the prices during rollovers. Is quite odd that such a poor performer attracts such larger interest? Likely not. UNG is not a leveraged ETF, but it performs as bad as.
UNG rollover dates for 2011:
Note, UNG has not published its official dates for 2011. These are estimates based on the fact that they rollover 2 weeks before the expiry of each natural gas futures contract.
Monday, November 1, 2010
Subscribe to:
Post Comments (Atom)
Hi
ReplyDeleteIf i am not wrong, UNG is supposed to make the big part of the roll over in OTC, due the high volumen they move.
greg