Options on Mutual Funds

[trd]

Hi, just a question:
is it possible to trade options on mutual funds?
(name / ticker of the MF ?).
Thx

 

[trd]

Quote from trd:
Hi, just a question:
is it possible to trade options on mutual funds?
(name / ticker of the MF ?).
Thx

Too bad, it seems normal mutual funds are not optionable (except ETFs):
http://www.tradingmarkets.com/.site...Never-Buy-Another-Mutual-Fund-Again-78355.cfm

 

[dagnyt]

Quote from trd:

Hi, just a question:
is it possible to trade options on mutual funds?
(name / ticker of the MF ?).
Thx

Why own mutual funds with those high fees?
Can't you find an ETF instead? But please - do not buy leveraged ETFs.

Mark

 

[erol]

Quote from dagnyt:
But please - do not buy leveraged ETFs.[/B]

not that I do, but just curious why not?

I do prefer the gamma characteristics of a put/call though.

 

[spindr0]

Yes, if a closed end fund is listed for options.

No for open end funds.

 

[dagnyt]

Quote from erol:

not that I do, but just curious why not?

I do prefer the gamma characteristics of a put/call though.

Owning those 2X and 3X funds is a bad idea. they are made for DAY TRADING only (ok maybe 2 days at the longest).

The way they are constructed, as time passes, unless the market is unidirectional, these leveraged ETFs lose value.

Mark

 

[erol]

I understand, thanks Mark!