Tourmaline Oil Corp (Alberta) T.TOU

Stupid question

[7Twiggy]

HNU to me looks like it could be a fantastic long term hold.  At some point natural gas prices
will move back to much higher levels. Wouldn't it make sense to load up at these levels and wait for the pop.  Look at the Hnu chart for the last few years.  This thing was in double digits.

[1condor]

7Twiggy...you need to better understand how HNU/HND works. Do some research. HNU or HND is not meant to be held long term...it is only to be used for very short term trading. 

[GunnerG]

Condor, can you explain why or provide a link? I have heard the same but can never find anything explaining why only short term hold   How will he lose if it goes up every week, even if only by a few cents    

[CriticalMind55]

I agree, HNU/HND have decay elements in them due to the underlying derivatives' that can be affected by backwardation and contango.  I have made good money holding HNU for three months, this is one play that timing is everything. So it does not have to be a very short play, but a somewhat short play, three months max at a time. If Hurricane hits a US state, this thing (HNU) can doubel

[7Twiggy]

Thanks for all the comments.  Still fussy to me. No good explanation that I can find.  Have been adding a percentage to HNU evertime I buy TUO.   TUO has great potential as a growth stock and the dividend should come out a 8 -10% a year if you count the four special dividends. Would be good if you could find a site that gives a flow chart and a couple of examples of how HWO

[1condor]

7Twiggy...HOU/HND should never be held long term. It is meant to meant to be traded daily. Some only hold it for hours.  I "strongly" suggest you research this further to be better understand how these work.

[7Twiggy]

Will do. Finally seeing the light. Not for the faint of heart.