Stockchase Opinions

Larry Berman CFA, CMT, CTA Horizons Gold Yield ETF HGY-T DON'T BUY Jul 15, 2019

This holds gold but writes calls. The more chopp gold is, the more this will be called away and you will buy back at a higher price. In other words, this won't perform well during gold volatility. This is good for paying yield. Instead, buy pure exposure with CGL or GLD.
$4.880

Stock price when the opinion was issued

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BUY
A Gold ETF where they are writing Covered Calls on the commodity itself and they are writing options against a third of it. If you are going to be in any kind of gold ETF that is based on the price of gold, he likes the idea of generating cash flow.
DON'T BUY

Covered call on bullion with a nice yield. If you are bullish on the underlying then don’t because you limit your upside. If you think it is range bound then this will enhance your returns. The total return is negative the last year and a half.

HOLD
If bullish on sector, not the best option (covered call). Good option for defensive investors looking for yield.