Larry Berman CFA, CMT, CTA
Horizons Natural Gas Yield ETF Comm
HNY-T
COMMENT
Nov 16, 2015
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.
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.
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.
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.