Why are there No Options on so many ETF?

Discussion in 'ETFs' started by aeliodon, Dec 12, 2006.

  1. such as:


    2x Long the NASDAQ-100 (QLD)
    2x Long the S&P 500 (SSO)
    2x Long the S&P MidCap (MVV)
    2x Long the Dow Jones Industrial Average (DDM)

    2x Short the NASDAQ-100 (QID)
    2x Short the S&P 500 (SDS)
    2x Short the S&P MidCap (MZZ)
    2x Short the Dow Jones Industrial Average (DXD)
  2. .
  3. No interest in them I guess....call the options industry council and ask for them.
  4. i`m guessing that having options on the GLD and USO would be a derivative of a derivative of a derivative.

    And the others are simply variations on NQ,ES,YM,SPY,DIA,QQQQ...which all have hundreds of options available...and thousands of possible strategies.
  5. Supply and demand.

    While the number of ETF's in the market are increasing as of late, the volume leaves much to be desired. Many of the ETF's in your list came out relatively a short time ago and most folks may not even be aware that they exist.

    Unfortunately, options will not be available until volume in the underlying picks up. Even then, you may be looking at some horrible bid/ask spreads.

    From your list, I think that GLD has enough demand to warrant the availability of options. Hopefully this will happen soon.
  6. My guess is that the CBOE and PHLX don't want competition for their existing gold and oil indices.

    XAU, OIX
  7. In the case of GLD and USO, if you're going to advance to a leveraged product why not just go with the future?
  8. Ambush
    Futures is a leveraged product with un limited liability(long) & 0 (short) where as in a long vanilla call/put,you just pay premium & forget.
    I trade GLD /USO stock often rather YG/QM futures.(no options) where as I will trade higher size confidently in SPY,IWM,DIA options compared to ES,ER2,YM futures!

    P.S: Trading XAU options & trading volatile gold stocks like GG,GFI,GDX instead of Gold for much better bang for the buck is another option