Replies to post #6902 on Velocityshares 3X Inverse Natural Gas Etn (DGAZ)

[dude iligence]

No i still own ugaz shares from $31s and $37s. Biggest concern is the .26 contango between nov dec contract which expires next thurs. Last month,last yr we have seen the contango spread bleed back down in the days surrounding contract roll. In terms of ugaz aprox $3 per .10 contango. In other words if nov is 3.20 and dec is 3.45 and ugaz is $50, which is tracking dec. When the contract rolls to dec the price of ng will bleed back toward 3.2 right where it was prior to the roll(given everything else remains the same). Ugaz would lose over $10 per share when ng settled at $3.2 same place frt month was before roll. DGAZ goes up an equal %. This could be considered a type of manupulation but it can also be a good way to make 10-15% playing the short side