Best way to hedge a short UGAZ position?

[dcwriter2]

No options trade on it so I was wondering if long calls on UNG would work better than pairing with Short DGAZ. Also, anyone know about any seasonality issues with UGAZ?

Thanks in advance.

 

[qwerty11]

BOIL and KOLD have options..........

 

[dozu888]

Hedging is a myth.

Take the loss. Like a man.

 

[maxinger]

Hedging is nonsense.

When UGAZ hits your stop, close your position, and move on with life.

 

[dcwriter2]

And if it gaps at the open?

 

[maxinger]

seems like UGAZ and Natural Gas futures are rather correlated.
those who swing traded and shorted it in ~ end Dec 2018 should be very happy.

 

[minmike]

Hedging is nonsense.

When UGAZ hits your stop, close your position, and move on with life.

Tell that to the hedge funds and market makers on the CBOE.

 

[maxinger]

Tell that to the hedge funds and market makers on the CBOE.

It is not my responsibility to educate them and change their mind.

If they think hedging is the way to go, by all means they should go hedge.
If they have change their mind, by all means they should go change their mind.

Whatever it is, if hedging works for you, please continue.
If hedging doesn't work for you, please discontinue.


There are tons of nonsense written by the 'experts'.
So it is important to have our own mind, do our own analysis.
And make decision based on our own analysis.
Personally I think hedging is utter nonsense.

 

[quant1]

DGAZ is inverse levered to the same index as UGAZ. Just sell a notionally equivalent amount of DGAZ.

 

[dcwriter2]

And if DGAZ is unavailable as a short ....