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13 ETFs Every Options Trader Must Know
February 22, 2013 at 09:00 AM EST
On most days, ETFs are among the most heavily-traded names in the investing world. This is a sure sign that active traders are using ETFs—a transparent, cost-effective way to trade market fluctuations–to gain access to a very wide range of sectors, commodities, countries, indexes, currencies and assets. The options market for ETFs has also been gaining steam. Whether you are looking to buy calls on the potential upside of an ETF, buy puts on a potential decline or write options, in the well-established ETF names you are likely to find a willing counter-party [see ETF Call And Put Options Explained]. Options are an additional tool used for speculation, or risk control. Buying calls and puts limits the buyer’s risk to the cost of a contract, which is a fraction of the cost of buying/shorting the actual ETF, but still lets the buyer profit from favorable moves. Options can also be [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
On most days, ETFs are among the most heavily-traded names in the investing world. This is a sure sign that active traders are using ETFs—a transparent, cost-effective way to trade market fluctuations–to gain access to a very wide range of sectors, commodities, countries, indexes, currencies and assets. The options market for ETFs has also been gaining steam. Whether you are looking to buy calls on the potential upside of an ETF, buy puts on a potential decline or write options, in the well-established ETF names you are likely to find a willing counter-party [see ETF Call And Put Options Explained]. Options are an additional tool used for speculation, or risk control. Buying calls and puts limits the buyer’s risk to the cost of a contract, which is a fraction of the cost of buying/shorting the actual ETF, but still lets the buyer profit from favorable moves. Options can also be [...]
