Options on Mutual Funds

Discussion in 'Options' started by trd, Aug 9, 2009.

  1. trd


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


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

  4. erol


    not that I do, but just curious why not?

    I do prefer the gamma characteristics of a put/call though.
  5. Yes, if a closed end fund is listed for options.

    No for open end funds.

  6. 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.

  7. erol


    I understand, thanks Mark!