The First Trust ISE-Revere Natural Gas Index Fund ( FCG) holds 31 of some of the world's most successful players in the space, including EnCana ( ECA), Anadarko ( APC) and Cabot Oil and Gas ( COG). While this exchange-traded fund has suffered mightily in the global growth slowdown, worldwide monetary stimulus has been particularly kind to FCG in the past. After 2010's installation of QE2, in fact, FCG went on a 50% six-month run between October 2010 and April 2011. I might be inclined to overweight "nat gas production" via FCG in aggressive client portfolios. Not only do I believe the commodity itself will get a boost from central-bank reflation policies. But whatever the composition of Congress in 2013, the legislative branch should be able to agree on one of the country's clearest competitive advantages. That said, Middle East crises and euro-zone flare-ups could keep cyclical investments on edge. For that reason, one should not expect to buy-n-hold the First Trust ISE-Revere Natural Gas Index Fund. Look for a buying opportunity near the 50-day moving average and employ a protective stop order when you make your purchase. This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Investors in First Trust ISE-Revere Natural Gas Index Fund saw new options begin trading this week, for the September 18th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 240 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration.