Exchange-traded funds (“ETFs”) are an attractive way for investors to easily gain exposure to specific countries, sectors, industries or asset classes. Just like equities, many ETFs have options that can be bought or sold on them, enabling traders and investors to employ unique strategies to control their positions. In this article, we’ll take a look at one options strategy that can be used to quickly recover from poorly performing ETF investments [see ETF Call And Put Options Explained]. What Is a Stock Repair Strategy? The repair strategy is designed to help long investors more quickly recoup their investment losses in an equity that has fallen. While holding onto their losing long ETF position, investors simply purchase one call option and simultaneously sell two call options with a higher strike price for every 100 shares owned. The result is an options position that reduces the equity ETF position’s breakeven point without any cost other than [...] Click here to read the original article on ETFdb.com. Related Posts: Daily ETF Roundup: IAK Jumps On AIG Earnings, DBB Pops On Copper Rally Friday’s ETF Chart To Watch: SPY Running On Empty Ahead Of Jobs Report Daily ETF Roundup: IEO Jumps After Pioneer Natural Resources Earnings, IYW Pops 7 Articles ETF Investors Must Read: 5/1 Daily ETF Roundup: XLV Slips On Pfizer Earnings, VGT Jumps On Apple Bond Deal
Exchange-traded funds (“ETFs”) are an attractive way for investors to easily gain exposure to specific countries, sectors, industries or asset classes. Just like equities, many ETFs have options that can be bought or sold on them, enabling traders and investors to employ unique strategies to control their positions. In this article, we’ll take a look at one options strategy that can be used to quickly recover from poorly performing ETF investments [see ETF Call And Put Options Explained]. What Is a Stock Repair Strategy? The repair strategy is designed to help long investors more quickly recoup their investment losses in an equity that has fallen. While holding onto their losing long ETF position, investors simply purchase one call option and simultaneously sell two call options with a higher strike price for every 100 shares owned. The result is an options position that reduces the equity ETF position’s breakeven point without any cost other than [...]
Click here to read the original article on ETFdb.com.
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