SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: axial who wrote (117851)2/16/2009 11:56:45 PM
From: Cogito Ergo Sum  Read Replies (2) of 206121
 
Jim,

contango and backwardation on leveraged ETFs. I think that is valid on those that use futures as the underlying theme like HBU/HBD, HOU/HOD... Actually the point you brought up made me think 'yes' it should apply to any ETF using futures.. but experience tells me HGU follows the stocks.. not the metal..

The 2X leverage does not need to be gained by playing futures.. although it can be. They can be using options too I guess..
TBS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext