Holy Xlf Batman!!

Quote from swtrader:

I'll take the contrary side to this

1) first of all, you're 'number blind' in an etf, there's no such thing as an 'expensive' or 'cheap' number

2) this sector XLF just went through a bubble - no iffs ands or butts. an etf can do ANYTHING in and after a bubble - just look at any computer networking stock etfs in the 2000-2002 period

am i saying XLF cant go up from here?

no, i'm not

i'm just saying that you cant look at a number and say it's cheap
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I guess my question is, can a heavily traded and popular ETF like XLF simply close shop and liquidate at anytime like a hedge fund or mutual fund thats shutdown?

My concern isn't really if XLF falls down to 4 or 5 bucks because I'll be writing calls against it to offset some loss, the only problem I would have is obviously if the XLF goes to 0 or it drops to 5 bucks next month and liquidate the darn thing. So really I'm betting that neither of the prior scenarios will happen.

I'm just going to do a small bullish position on this, rest of my portfolio is either neutral or slightly bearish after covering shorts today so I'm willing to dip my toes in on some bull action.

I went ahead and did sell 1 10/6 spread for a premium of $127 after commissions, I'm looking to add 4 more contracts. We'll see how it goes! :confused:
 
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