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What Every ETF Investor Needs To Know About Options
June 11, 2013 at 09:00 AM EDT
ETFs have become a staple product in the investing landscape; with more than 1,400 ETFs to choose from, there is one, or several, that provides access to almost every type of financial product available. While this diverse group of ETFs can provide exposure to a specific niche within the economy, the ETF may be too risky, or not volatile enough to suit an individual’s needs. By combining options with ETF trading, investors can fine tune their financial goals, through reducing risk, increasing exposure, or creating a synthetic position not available by purchasing ETFs alone [Download 101 ETF Lessons Every Financial Advisor Should Learn]. What Are Options? An option is the ability to buy or sell an underlying instrument such as a stock or ETF, at a pre-defined price (strike price) within a certain time frame (by the expiration date). One option provides access to 100 shares. If you believe a stock will rise [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
ETFs have become a staple product in the investing landscape; with more than 1,400 ETFs to choose from, there is one, or several, that provides access to almost every type of financial product available. While this diverse group of ETFs can provide exposure to a specific niche within the economy, the ETF may be too risky, or not volatile enough to suit an individual’s needs. By combining options with ETF trading, investors can fine tune their financial goals, through reducing risk, increasing exposure, or creating a synthetic position not available by purchasing ETFs alone [Download 101 ETF Lessons Every Financial Advisor Should Learn]. What Are Options? An option is the ability to buy or sell an underlying instrument such as a stock or ETF, at a pre-defined price (strike price) within a certain time frame (by the expiration date). One option provides access to 100 shares. If you believe a stock will rise [...]
