Hey samoth... remember when you were asking for that stock pick a while back

[Jon79]

i said the QQQ it was sitting at 30 or so when we talked

PowerShares Exchange-Traded Fun ETF Chart - Yahoo! Finance

 

[Stefka]

I remember! I don't know anything about ETFs or other bondy funds, though. I want to get into options, but covering positions is expensive. I can see why they expect 10s of k in accounts.

How do EFTs differ from other securities? Do they trade on different markets?





EDIT: Oops, wrong account.

 

[Jon79]

thats why i gave u that pick bro.... with an ETF you get the same diversity as you do in a fund....

an ETF trades just like a stock bro no difference..

hene the name "Exchange traded fun" its simply a stock that has a piece of every part of the nasdaq..

 

[Stefka]

thats why i gave u that pick bro.... with an ETF you get the same diversity as you do in a fund....

an ETF trades just like a stock bro no difference..

hene the name "Exchange traded fun" its simply a stock that has a piece of every part of the nasdaq..

Are derivatives for EFTs traded?

 

[samoth]

Also, do EFT hedge managers publish which stocks they use?

 

[Jon79]

as far as the stocks they use im sure that it goes by percentages... so if 60% of the nasdaq is made of of semiconductor sector then 60% of the ETF will hold semiconductor stocks....

here is everything u would every wanna know on ETF's

Exchange-traded fund - Wikipedia, the free encyclopedia

 

[samoth]

as far as the stocks they use im sure that it goes by percentages... so if 60% of the nasdaq is made of of semiconductor sector then 60% of the ETF will hold semiconductor stocks....

here is everything u would every wanna know on ETF's

Exchange-traded fund - Wikipedia, the free encyclopedia

*contemplates researching derivatives on leveraged ETFs*

 

[Jon79]

Are derivatives for EFTs traded?

ok i do not think derivative contracts are traded on etf's

again the ETF is traded on the same exchange as stocks. its treated just like a stock.

so if you are long say the QQQ long term and you forsee a downturn in the market. you can buy covered put options on the QQQ to hedge your investment...

hope that helps.. and yes opion contracts are written on ETF's bc they are considered a traded security just like microsoft is..