Flickering tensions with Iran could trigger this gear oil ETN

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Oil prices rose sharply on Friday when a U.S. airstrike killed General Qassem Soleimani, head of the Iranian elite Quds. This shamed some Democrats and promised retaliation from Iran.

What happened

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Perhaps surprisingly, oil stocks like Dow components Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) didn't ride as it is often when geopolitical tensions flare up in the Middle East, "data-reactid =" 20 "> Perhaps surprisingly, oil stocks like Dow Components Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) has not participated, as is often the case when geopolitical tensions flare up in the Middle East.

<p class = "canvas-atom-canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Should hostilities between the US and Iran member if the organization of oil-exporting countries escalates, oil stocks could increase, and that would benefit the EU Micro Sectors US Big Oil Index 3X Leveraged ETN (NYSE: NGRU). "Data-reactid =" 21 "> Should the hostilities between the United States and Iran, a member of the Organization of Petroleum Exporting Countries, escalate, oil stocks could increase and this would benefit the United States Micro Sectors US Big Oil Index 3X Leveraged ETN (NYSE: NGRU).

NGRU is part of a family of five big oil ETNs, including a double leveraged bullish fund and three bearish products. The company has exposure to the 10 largest U.S. oil companies by market value, including Exxon and Chevron.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "See also: Oil trade experts after a fatal air strike against the Iranian general"data-reactid =" 23 ">See also: Oil Trade Experts After Deadly Air Attack Against The Iranian General

Why is it important?

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "" The Ministry of Defense held Soleimani responsible for the death of Hundreds of Americans said he was behind the recent attacks on coalition bases in Iraq, including one on December 27 that killed an American defense contractor. " reports CBS News"data-reactid =" 25 ">" The Department of Defense blamed Soleimani for the deaths of hundreds of Americans and said he was lagging behind recent attacks on coalition bases in Iraq, including one on December 27 that killed an American defense company has been. "reports CBS News.

NGRU could be in the spotlight at short notice as the White House wallows in after Soleimani's death and Tehran's promising retaliation.

NGRU is expected to deliver three times the daily output of Solactive MicroSectors' US Big Oil Index. The 10 stocks in the benchmark are weighted in equal parts at 10% each.

For tactical traders looking beyond the Iranian controversy, the NGRU could be useful this year, as many analysts consider the energy sector to be attractive and outperforming after being the worst performing S&P 500 last year Group were classified.

What's next

As always with powered instruments, it is good to make decisions and prepare for the fact that their original thesis might be wrong.

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "MicroSectors dealt with what concerns NGRU in the form of Micro Sectors US Big Oil Index -3X Leveraged ETN (NYSE: NGRD), the triple indebted equivalent of NGRU. "Data-reactid =" 31 "> MicroSectors is based on what applies to NGRU in the form of Micro Sectors US Big Oil Index -3X Leveraged ETN (NYSE: NGRD), the triple indebted equivalent of NGRU.

Should oil rise without names like Exxon and Chevron, NGRD could be the biggest beneficiary of the current disaster with Iran.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Photo credit: Adam Jones, Flickr"data-reactid =" 33 ">Photo credit: Adam Jones, Flickr

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