Say I want to be buying some call options on Oil. Would options be a better instrument for me in the medium term (6-12 months) or would something like Horizons 3x Bull/Bear ETFS (HOD/HOU) be a better option. Does anyone in Canada have any experience with option trading in commodities? Thanks,
Do you trade futures? If you are asking about options on futures, that is probably a sign that its too risky for you! Firstly, being in Canada does not mean you are stuck trading Canadian exchanges, are you asking about trading oil futures? 3X ETFs are pretty damn risky and should be for for short term trades only! But if you do manage to catch a good trend or your exposure is not a major part of your portfolio, then HOD or HOU can work out.
It would likely be with less than 5% of my portfolio - but yes, Oil futures is what I was referring to.
If your trading account has margin, check with your broker if you can do futures. If you cant, then crack these days is UWTI and DWTI, but again, holding these things long term is not a good idea!
