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
http://finance.yahoo.com/news/3-Pitfalls-Of-Leveraged-And-etfguide-14933372.html?.v=1

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
http://finance.yahoo.com/etf/browser/mkt?k=8&c=etf_bm&f=0

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

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