# HEE and HEF



## seanatis (Feb 7, 2010)

Does anyone here own any of the 2 subject securities? I started looking at them today and got interested.

Cheers!

Sean


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## MoreMiles (Apr 20, 2011)

seanatis said:


> Does anyone here own any of the 2 subject securities? I started looking at them today and got interested.
> 
> Cheers!
> 
> Sean


Read about his thread. http://canadianmoneyforum.com/showthread.php?t=6791&page=6

These Horizons covered call ETF's are quite new. They are being asked all the time on BNN (even on the show last Friday, June 24). You should not buy them if you don't know what an option is and how to write one yourself. If you understand the implication of writing a covered call and don't have time to do it yourself, these ETF's may be suitable.

They do HEF because banks are stable. They do HEP because gold stocks are volatile, which translates to a higher implied volatility in option premium. I'm not sure why they do HEE energy especially Obama has made it clear that he wants to suppress crude oil price so I don't see a good result in HEE.

Now... the comment made on HEX at BNN show last Friday is... it's an index with different stocks moving at different directions. So you will have losers and winners. At the end, they cancel out each other so you are using the winner's premium to subsidize loser's value... it's not a very good idea.

I think in HEF, most banks move at the same directions, either all up or all down. So I think it is more profitable.

I'm not sure if I have the right understanding about HEX. If other people have comments, please feel free to add.


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