Shiller: Now You Can Short Housing (ETF: DMM)

“One reason we have bubbles in the housing market is because there’s been no way to short housing,” the Yale professor tells Time. “The ability to short is essential to an efficient market, otherwise there’s nothing to stop zealots from pricing things abnormally high.” One version of the ETF (UMM) allows investors to buy the […]

Semiconductors Conduct A Comeback (ETF: SMH, PSI)

Recent commentary from management at Applied Materials (Nasdaq:AMAT), Intel (Nasdaq:INTC) and Advanced Micro Devices (NYSE:AMD) seems to indicate the current semiconductor cycle is in a bottoming process, providing an opportunity for investors willing to make that bet. Applied Materials Reports Messy Quarter Applied Materials, which manufactures capital equipment for sale to Intel and others, recently […]

Opposites Attract

At this week’s Financial News conference on “Investing in ETFs” John Godden, head of London-based hedge fund advisor IGS Group, spoke of the convergence of the hedge fund and ETF industries. This may seem strange at first sight, since the two types of fund sit at opposite extremes.  One type of fund structure is associated […]

Natural Gas ETF Draws Heavy Call Trades

The U.S. Natural Gas Fund (UNG) is drawing large trades that are apparently counting on its shares to rise 20% in the next five months. More than 31,700 calls traded at the Oct. 20 strike yesterday, dwarfing the average volume of 523 contracts, according to OptionMonster’s tracking programs. The calls included two large blocks — […]

Options: Put-Buying in SPDR Retail ETFs

The news hasn’t been good so far this week for retail stocks, and big put activity in the SPDR Retail Exchange Traded Fund (XRT Quote) today could suggest investors are hedging against a further downturn. Looking at the Sept. 20 puts, we see that more than 15,300 of those contracts changed hands for around $1.00 […]

An ETF For Every Investor!

In last week’s Money and Markets column, I told you about the advantages exchange-traded funds have over mutual funds. Today we’ll go a little deeper and look at the many exciting ways you can execute your investment ideas with ETFs.  As you’ll see, practically all the new financial innovation is happening in the ETF niche. […]

Shorting both FAS and FAZ for an 87% return?

(abacusengineer.blogspot.com) I’ve been playing around with ETFs for a while and thought about a way to generate a considerable profit from them. Option traders are familiar with time decay but it also applies to leveraged ETFs. This ETF time decay is a result of the fund management fees, leverage financing interests and other expenses. Since […]