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Global X Can Oil and Gas Equity Covered Call ETF T.ENCC



TSX:ENCC - Post by User

Post by deisman03on Nov 08, 2023 7:01pm
125 Views
Post# 35724900

Traders belly up at $10.60

Traders belly up at $10.60IMHO, that's just speculation again, albeit with some relevance. 

The reason this ETF is paying such a high dividend is because in the ''recent past'' they've been making decent profits because the average price of oil has given them premiums. 

If the price of oil drops and stays down for a few more months, available distributable cash will no longer be easily come by and the divvie will drop incrementally as profits decline. 

In Canada, the Liberal Carbon Tax is also eating into those profits as are Carbon Pricing fees. The Liberals don't appear to be showing any signs of changing this cash grab policy. 

To much risk right now for my tastes. Did well for a few months until the prices for Canadian blends of crude started waterfalling.

Don't fall in love with these things when they're just starting to go under stressful conditions in the markets. 

Maybe I'm being to cautious but over the past fifteen years, markets turn on any excuse, good or bad.  

GLTA the good folks here. 
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