Thursday, May 14, 2009

Options Trading vs Long/Short ETFs

Options vs Long/Short ETFs
In a turbulent market where many hedge managers use option instruments manage decent returns are there any common investor instruments that we could use rather than navigating complex Option contract instruments ?
I think the Long/Short ETFs could be a decent instruments to check out
In a crashing market, Short ETFs have proven the best class last year from a performance stand point, some returning over 100% returns
Consider the Long / Short ETFs pitfalls before going into this model

Consider some research behind the Bear Market ETFs
You can spread the Long and Short at 60 to 40 based on what direction you think the market is headed

Have fun, happy investing and also post me any new ideas you may have to play ???

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