Contrary to a recent thread "Forever Bull Market," I've been searching for a conservative bearish strategy. I'm aware of the buy puts, sell calls, and even individual bear put spreads, but am looking for a fund or ETF, that focuses on bear put spreads. There are plenty of funds that do buy-writes, etc., but I have not found any entity that basically does short stock - write puts, or buy put spreads. I get it, especially with Central Bank money printing, assets go up most of the time, so that is where fund managers focus. Some info on trading bear put spreads: https://optionswithdavis.com/the-ultimate-guide-to-trading-the-bear-put-spread-debit-spread/ And info about HIGH, a fund that generates income from selling calls: https://seekingalpha.com/article/46...-generates-income-from-selling-option-spreads One plus for option ETFs these days, is that margin money can be placed in TBills, thus starting with a 5% yield cushion.
There are plenty of leveraged inverse ETFs that short the major indexes. But those are generally short-term plays. Are you looking for something longer term, i.e., a buy-and-hold ETF that is functionally equivalent to shorting... what? A particular index?
I am looking for a short stock and write put fund, or just a bear put spread. The simple case would be bear put spreads on SPY. But as for long / write calls, I'd prefer something that short say 100 -500 stocks, and wrote 100-500 individual puts against them, and then kept rolling those positions.
Aside from the time and capital, commission savings, and fully using TBills for margins, would more than make-up for the fund fees. For an individual, without a fully-manned computer operation, no way could I have say 500 + stock positions, with corresponding 500 + puts, constantly managing, rolling, etc.
It's kinda like having a safety net in case things go south. But lemme tell ya, it's not a guaranteed win. I tried it once and ended up losing more than I expected. It was a bummer, for sure. But hey, that's just my experience.
Not just "in case." Markets have traded for thousands of years, even hundreds in the U.S. It has only been maybe 20 years, where markets have mostly just gone higher. I suspect the next decade could be down, or at least flat, so a bear strategy may be worthwhile.
Depends upon how risk adverse one is. This is a trading site, and whether long or short, goal is to profit from short-term or even medium-term tactics.