Right on December 31, 2010, I sold my Horizons BetaPro NYMEX Crude Oil Bull (HOU.TO) ETF Shares…this was the last day to do it. Because the Horizons BetaPro NYMEX Crude Oil Bull (HOU.TO) ETF Shares invest in Cruide Oil futures and futures / options always expire.
Looking at the chart of the Horizons BetaPro NYMEX Crude Oil Bull (HOU.TO) ETF Shares on the Toronto Stock Exchange (TSX) it looks they expire every six months in which the shares split 1 to 5. If you don’t sell it before it expires you will be left holding them at 1/5 the value so you will lose.
Luckily on this last day before the split, I was able to sell my Horizons BetaPro NYMEX Crude Oil Bull (HOU.TO) ETF Shares for $7.77, my cost was $7.08 which means the trade made $0.69 / share minus commissions. This works out to roughly 9.74% profit, not great but also not bad in the current economic environment given that you make next to nothing leaving your money in a savings account that pays less than 1%.
My next move is to either move into the Horizons BetaPro NYMEX Crude Oil Bull (HOU.TO) ETF Shares again when crude oil prices takes a small break…or if it looks right I might place a trade on some gold bullion ETFs.
by Das Brain
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