Larry Berman CFA, CMT, CTAHorizons Natural Gas Yield ETF CommHNY.TOCOMMENTNov 10, 2014
Nat Gas ETF. You have to look at what these do. This one is a yield seeker so there is an options strategy. He doesn’t follow it. You get some seasonal moves in these things because of what natural gas prices do.
A natural gas yield play where they write calls on Nat Gas futures. The premium from options is high because volatility on natural gas is high. Don’t buy this for yield. You are still exposed to the commodity.
An ETF that hedges out your currency risk and holds Nat Gas futures with a covered call strategy and thus has a higher yield. This is a nice diversifier in a portfolio. If the price of Nat Gas goes down you would make a nice yield while the ETF share price went down.
Nat Gas ETF. You have to look at what these do. This one is a yield seeker so there is an options strategy. He doesn’t follow it. You get some seasonal moves in these things because of what natural gas prices do.