FYI: In early 2014, the term “polar vortex” entered the investor lexicon. A deep plunge in temperatures across both North America and Europe led many investors to a “high-conviction” trade. The low temps, many realized, would lead to a massive spike in natural gas consumption—and natural gas prices.
When most people think of such high-conviction trade windows emerging, the venue of choice is often the options market. And when natural gas prices spiked five winters ago, investing in natural gas futures paid off.
But for some investors, leveraged exchange-traded funds hold greater appeal than options when these short-term trading windows open up.
Regards,
Ted
https://www.fa-mag.com/news/leveraged-etfs-versus-options-44531.html?print
