4 Reasons to Trade ETF Options

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As a reader of options trading articles I’m sure you are familiar with the numerous advantages of trading exchange-traded funds (ETFs), which allow investors to get long or short sectors and even indexes in almost any trading account. But are you aware of the benefits of ETF options?

If not, you should familiarize yourself with them, because they offer all the advantages of ETFs and more, namely the following:

1. The expense fees for ETFs are low, but there are NO expense fees for ETF options. Why own when you can rent? Options provide the benefits of stock ownership without the capital requirement. The fundamental advantage of an ETF is the diversification they offer in a single investment, but ETF option traders gain exposure to these investments without paying the fees.

2. Buying options on the right ETF is an inexpensive, risk-controlled way to cash in on a trend. Since an option controls 100 shares of an ETF at a fraction of the cost of actual ownership, a small move in the ETF means a much bigger profit. It’s true that with an option you can lose the entire cost of the option, but your risk is limited because the most you can lose is what you put into the trade.

3. Options on ETFs deliver the agility of ETFs with the profit potential and diversity of options.

4. When used correctly, ETF options are the ideal tool to build a fortune. I don’t think there’s any other investment vehicle that offers such flexibility, versatility, ease-of-use, and money-making potential.

Learn more at ETFTradr.com.


Article printed from InvestorPlace Media, https://investorplace.com/2010/12/4-reasons-to-trade-etf-options/.

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