Holy Xlf Batman!!

Discussion in 'Stocks' started by huh, Nov 19, 2008.

  1. Hmm, interesting. Is there a precedent (in ETFs)?
     
    #21     Nov 20, 2008
  2. huh

    huh

    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:
     
    #22     Nov 20, 2008
  3. They better hurry. A reverse split of 0 is still 0.
     
    #23     Nov 20, 2008