10 Reasons to Use ETFs When Trading Options
Michael Shulman, February 7, 2009
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ETFs let you play a belief, such as the price of oil is going up or down. A double-short or double-long ETF reinforces that opinion in a highly efficient manner -- when oil goes up a dollar, your ETF goes up or down two dollars. So it follows that a call on a long ETF on oil means you really see oil prices going up, and a put means you really believe they are really going down. Options on ETFs, while quite risky, are the cheapest and most-efficient way to reinforce a belief in a position in the market -- and potentially the most profitable.Next: Quickly Playing Trends for Profits
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