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UGA: A Seasonal Long Put Spreads Could Be Interesting (NY...
Andrew Hecht · 2026-06-24 · via All Articles on Seeking Alpha

Summary

  • The United States Gasoline Fund LP ETF trades above $100, reflecting seasonal gasoline price strength during the 2026 driving season.
  • Gasoline futures and refining spreads remain elevated, but the forward curve signals significant price declines into the 2026/2027 offseason.
  • UGA faces substantial downside risk post-driving season, with ETF grades highlighting high momentum but poor risk and expense metrics.
  • Buying UGA $100 put options expiring January 2027 offers a defined-risk, high-reward strategy as gasoline prices could revert to prior lows.
  • Looking for more investing ideas like this one? Get them exclusively at Hecht Commodity Report. Learn More »
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ethanol, biofuel, automotive fueling at gas stations

Lima/iStock via Getty Images

Crude oil and oil product prices became a falling knife as prospects for peace in the Middle East and the reopening of the Strait of Hormuz grew more likely.

The market is in the heart

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.

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