ETF's That Let You Trade the Volatility Index "VIX"

Matt Thalman - INO.com Contributor - ETFs


One of the many great side effects to the rise in popularity of Exchange Traded Funds, ETF's, is that they have increased the types of investments individuals can buy into. The average investor can now easy buy and sell funds that hold actual commodities, indexes, bond portfolios, and even dabble in the options markets without ever making a signal put or call trade themselves.

Today, I would like to point out how investors can use ETF's to play the S&P 500 Volatility Index or VIX.

But, before we get into the ETF's that allow you to profit from the VIX's moves, let take a look at the VIX itself and what causes it to move in one direction or the other. The VIX is calculated using option pricing. It looks at the price of the call and put options because we know that higher option prices mean that investors believe there is a greater chance of volatility. Without getting into too much detail about options, the reason this works is because if an underlying security has high volatility it can make an option more or less valuable depending on what side of the trade you are on. Because the level of volatility will change the likelihood, the option will expire in or out of the money.

Are you confused yet? Continue reading "ETF's That Let You Trade the Volatility Index "VIX""

A New Immunotherapy ETF Has Launched

Noah Kiedrowski - INO.com Contributor - Biotech


Update

I previously wrote an article laying the groundwork for an exciting immunotherapy ETF launching in the second half of 2015, “A Niche ETF In The Potentially Promising Future Of Immunotherapy Is On The Horizon.” Loncar Investments has teamed up with an ETF firm and finally launched its immunotherapy ETF, Loncar Cancer Immunotherapy ETF (ticker symbol: CNRC). I wanted to update readers on the latest information and launch of the ETF as many readers requested.

Introduction

Immunotherapy has emerged as an exciting therapeutic area that has experienced massive growth over the past few years in terms of research and development expenditures and a sheer number of clinical trials throughout the biotechnology sector. Immunotherapy ushers in a new class of potentially promising therapies by leveraging the immune system to recognize and eradicate debilitating diseases, specifically cancer and chronic viral infections. This immunotherapy approach may inevitably result in a paradigm shift from traditional medical intervention. Immunotherapy possesses holistic attributes by harnessing the body’s immune system to contend with the disease. Continue reading "A New Immunotherapy ETF Has Launched"

Chart to Watch

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of SPDR ETf S&P 500. (SPY) Continue reading "Chart to Watch"

"Take calculated risks. That is quite different from being rash."

Continuing with our options theme this week we have brought in, J.W. Jones, the primary analyst and moderator of OptionsTradingSignals.com. Today J.W is going to share with you his take on the recent silver market, and how volatility and options have presented him great opportunities in markets where traditional investors are running for the hills. Be sure to comment with your thoughts and visit J.W at Options Trading Signals.com.

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Take calculated risks. That is quite different from being rash.
– George S. Patton -

Last week silver was the focus of incredible price swings which left many licking their wounds and shaking their heads at the trading losses they had incurred. This sell off was likely triggered by the increase in margin requirements for futures contracts, but the stunning price decline extended to all vehicles like exchange traded funds use to trade the glimmering metal.

I recognized the potential opportunity early in the week, and began to look at various position structures using options on Tuesday morning. In order to understand the thinking behind this trade, it is necessary to understand the concept of implied volatility of an option contract. Implied volatility, together with time to expiration and price of the underlying security, form the three primal forces that rule the world of option pricing. This measure of volatility is best described as the collective opinion of traders as to the future volatility of the price of the underlying. Implied volatility is the variable which determines if options are priced cheap or overvalued. Continue reading ""Take calculated risks. That is quite different from being rash.""

Afternoon Market Update (4/15/11)

Do you smell something burning? It must be the metal markets because they're on fire!!! Need a hot ETF for your portfolio? We've got that too. See what you missed from today's market update. Be sure to join me LIVE, every weekday at 1PM ET for current, actionable data for your trades.

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Every success,
Adam