Condor Options

Is a Volatility ETF a Good Idea?

Wednesday, September 10, 2008

Bradley Kay at Morningstar would like to see an ETF that tracks the VIX: Equities not only provide a return, but they also have a volatility that estimates how risky they look in the near future. [...] While it has historically hovered around 20, the VIX falls during quiet market periods and spikes when a flurry of trading activity buffets the stock market. An investment in this index would provide a valuable hedge against periods of heightened uncertainty, and since volatility…

Avoid Options on Inverse Index ETFs

Wednesday, June 25, 2008

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Reader S. V. raises an interesting question: I am working on scenarios to trade the contra-ultra indexes like SDS to take advantage of either a combo spread (selling puts and buying call) or another method to take advantage of price movements while reducing risk. Any thoughts? Interesting idea. These Ultrashort ETFs have really gained in popularity and most of them (like SDS, DXD, QID) now have enough volume to make them decent trading vehicles. The actual stock, that is. The options are…

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Is a Volatility ETF a Good Idea?

Avoid Options on Inverse Index ETFs

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