Is the etf CORN okay for long term holding?

[losemind]

Usually etfs for commodities have a time-decay-in-value problem...

What about the etf CORN?

Any thoughts?

Thanks

 

[Handle123]

Considering I been selling Corn, Oats, Beans, Meal, Index futures as long term trades on Aug 21, I wouldn't be buying any grains on ETF. Nothing goes up forever. Now granted, it might take me a couple stabs at finding the highs or this can be the start of many markets take a hard tumble, regardless, I will find the highs. Most of my stock methods are starting to go negative which means I will start selling short soon.

 

[cdcaveman]

Your playing the term structure buying futures based etfs. Read the prospectus... your better off spreading directly in the futures per the curve and per your view

 

[losemind]

yeah, but buying futures directly I need to roll myself... if I forget one roll due to busy schedule then I ended up having corns in my yard..

 

[Nym]

to me it looks like that been long on corn ETF is not that different that been long on corn and keep rolling.

The question is been long on corn (and keep rolling ) is good for long term holding?


Btw, no problem with the garden.. probably your broker will close the position for you

 

[cdcaveman]

Quote from losemind:

yeah, but buying futures directly I need to roll myself... if I forget one roll due to busy schedule then I ended up having corns in my yard..

ratio backspread in the options..... don't expose yourself to roll cost/contango without knowing exactly what your cost of doing business is..

 

[2rosy]

Quote from cdcaveman:

Your playing the term structure buying futures based etfs. Read the prospectus... your better off spreading directly in the futures per the curve and per your view

agreed. but i would sell commodity etf calls

 

[Jason Edwards]

Why paying someone do what you can do yourself?

 

[SUPERIOR1]

Quote from losemind:

yeah, but buying futures directly I need to roll myself... if I forget one roll due to busy schedule then I ended up having corns in my yard..

Your broker will let you know because you'll need to deposit more funds to make up the entire margin.

Or do options (on futures).

Why do you want to keep rolling? Since it sounds like you are going to be moving across at least one expiry day, why not buy a front month at an even better price?

 

[nicbizz]

Quote from cdcaveman:

ratio backspread in the options..... don't expose yourself to roll cost/contango without knowing exactly what your cost of doing business is..

Could anyone provide a quick example or a link of what a "ratio backspread" is?

THanks!