Trading Options with ETFs, Indexes, Weeklys, and Mini-Options
For many of you, this will be an exciting chapter, especially if you don’t know about these unique products. In this short chapter, you will be introduced to trading options on ETFs, Weeklys, mini-options, and indexes. Remember this: Anything you do with standard options can be done with any of these.
Options on ETFs
Exchange-traded funds are similar to mutual funds but are traded like stocks, that is they can be bought and sold during the trading day rather than only once per day at the net asset value.
Using Options on ETFs to Speculate
You can buy options on exchange-traded funds (ETFs) to speculate on the direction of the underlying index. Buying call or put options on indexes ...