10 Reasons to Use ETFs When Trading Options
Michael Shulman, February 7, 2009
Free Trading Guides
-
If you want to maximize volatility, puts and calls on ETFs are the way to go. A 3% drop in the Dow Jones Financial Index equates to a 6% gain in the ProShares UltraShort Financials ETF (SKF) which, in turn, would probably generate a 40%-75% gain in selected calls for that ETF.
Not bad for a 3% move in the index, far more than you would get if an individual bank stock went down 3%.
More By This Expert
What are the five rules for constructing great short-side positions? Read on to find out.
The Bad News Victims of 2008 are the
New Victors of 2009
There were a lot of losing trades last year, but there were also winners for those willing to bet against conventional wisdom -- and this will be the case in 2009, too.
The 10 Dumbest Analyst Calls of 2008
This collection of calls has been easier to write than See Spot Run. My only difficulty has been restraining myself in order to not be sued, punched out or have my tires slashed.
Don't Stop 'Banking' on a Bailout
The Titanic is only just approaching the iceberg. And there aren't enough lifeboats handy for everyone who's going to need one.
