Post by
smallcaptdr on Jul 07, 2022 7:33pm
How HOD ETF works in layman terms...
HOD ETF uses a mathematical formula to figure out what the bid & ask should be in relation to the price of Oil and allows for efficient trading of HOD throughout the day. The ETF's net asset value (NAV) can be calculated throughout the trading day as the underlying CL futures contract changes the bid & ask prices to be historically within $0.01 or $0.02 of the NAV.
In layman's terms, you can watch the bid & ask for change while watching the price of Oil changes so it's not like trading a stock where the SP changes by the free will of investors.
I invest in HOD because Oil will collapse from these highs and this opportunity only happens a few times in the decades. If you were to buy today and hold you will make 1000's depending on your original investment. You really need to see the bigger picture of where Oil is heading to appreciate what a great opportunity this is. I've done my homework and that's why I have been able to profit in the 10's of 1000's of dollars recently.
And you'll notice that no one posts here because of its calculated prices but the daily average volume is always between 3 - 9Mil shares so the BB has zero effect but there's no shortage of investors. If your looking for cheap shares just wait for Oil to rise but timing is everything JMHO (always DD)