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The Q.ai Team

About Q.ai's Gas Spike Kit

About Q.ai's Gas Spike Kit

We know you know. Prices at the pump are sky high—fueled by an amalgamation of factors, including the rising rate of inflation amid a recovering economy and war.

Gasoline in the U.S. is more expensive than ever before. But your portfolio doesn’t have to take a hit with your wallet. 

Futures markets are forecasting a drop in crude oil prices, but gasoline prices may lag with little movement in the months ahead. We created a Kit that capitalizes on that lag, hedged to crude oil exposure. 

About the Gas Spike Kit

Q.ai has the educated outlook that crude oil prices will start to decline in the next few months ahead. However, we also expect that gasoline prices will still remain high, especially throughout the summer.

The result: a widening in prices at the pump and the costs of crude oil.

The divide between waning crude oil prices and stagnant gas prices could create value for investors. And Q.ai is here to help you garner wins from that widening.

Long gasoline and short crude oil

The Kit works like this: Long gasoline and short crude oil. 

Because buying and shorting gets complicated, the investment in inverse ETFs offer the same benefits of holding short positions without the complex mechanics. The Kit taps into commodity ETFs, investing in U.S. Gasoline Fund (UGA) and shorting crude oil with ProShares UltraShort Bloomberg Crude Oil (SCO), an inverse ETF for crude oil futures.  

However, the sensitivity of gas prices to oil prices is not exactly one-to-one. Therefore, the Gas Spike Kit automatically adjusts each week to ensure that the overall trade is approximately neutral to changes in crude oil prices.

Reap rewards in the gap of gas and oil with Gas Spike

Crude, like many commodities, has an active futures market, which allows for suppliers and buyers of oil, agricultural goods, precious metals and other commodities to gain certainty about quantity and prices. But the futures market also provides an avenue for speculation.

The futures market can provide information about future delivery prices for various goods. While rising inflation and storage costs typically send prices trending upward, this time, quite the opposite is occurring for crude. And the future declines are, in some ways, indicative of a temporary elevation in current market prices for oil.

This Kit works to reduce the swings associated with crude oil prices to, ultimately, capture the expected divergence between gasoline and crude oil.

Bottom line

Through this Gas Spike Kit, you can capitalize on our expectations that oil prices could decline in the future, but gasoline prices could remain elevated throughout the summer months, at least relative to crude costs.

But remember: this is a timely long-short trade for the summer. You have to get in on it while it makes sense. Like all Limited Edition Kits, we will also help you find the right time to turn off this timely trade and reinvest elsewhere.

Because it’s a specialized paired trade, we’re offering it as a smaller position that anyone can add to their portfolio. The low investment minimum of the Kit is only $50, making it a more affordable way to diversify your portfolio.

Add the Gas Spike Kit to your investment portfolio in Q.ai.

Disclosures
Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.

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