A Handy List for Option on ETF Traders

  • SumoMe

Focus is important.  Hey look, a squirrel!  OK, I’m sorry, what was I saying?  Well in any event, one thing I constantly tell people is that there has never been a better time to be a trader.  For one thing, the advent of ETFs has opened up a world of opportunity for investors and traders across a wide variety of investment categories.  In addition, options on ETFs allows traders to implement many strategies – and take advantage of  numerous opportunities – at a fraction of the cost involved in trading ETF shares themselves.

Ironically, the good news and the bad news for traders are one and the same.  The good news is that there are so MANY OPPORTUNITIES available now.  The bad news is that there are SO MANY opportunities available now.

Every day it seems like new ETF’s are coming out covering some even more arcane, previously not covered investment area.  You will know its peaked when they come out with the “Alphabet ETF Series”.  Can’t you see it coming?  For example:

*iProWisdomShareSPDRexion “A Name Fund” which trades every stock whose company name starts with the letter “A”.

*iProWisdomShareSPDRexion “A Ticker Fund” which trades every stock whose ticker name starts with the letter “A”.

(OK, in the interest of full disclosure I am sort of looking forward to owning a few shares of the “J” Fund)

So on and so forth until they get through “Z”.  Then come the leveraged, inverse and sector funds (Energy A, EnergyB, etc)……..The marketing people are staying up late my friends.

OK back to focusing:

To aid in the effort of helping traders to focus, please see the table in Figure 1 below.  There is really nothing earth shattering or ground breaking about this list, but it does provide a handy list of the ETFs in a variety of categories that have the most option trading volume.

If you narrow it down even more to just those tickers that are bolded, chances are you will find more opportunities than you can use.  The bottom line – if you can’t find some option trading opportunities here, you probably should not trade options.

 

Category ETF Name Ticker Ave. Option Volume
US Stock Index  SPDR SP 500 SPY 1,448,449
US Stock Index  POWERSHARES QQQ QQQ 319,211
US Stock Index  ISHARES RUSSELL 2000 INDEX IWM 284,749
US Stock Index  SPDR DOW JONES INDUSTRIAL AVER DIA 70,403
US Stock Index  WisdomTree Japan Hedged DXJ 39,030
US Stock Index  DIREXION DAILY SMALL CAP BULL TNA 16,407
US Stock Index  DIREXION DAILY SMALL CAP BEAR TZA 13,466
US Stock Index  PROSHARES ULTRASHORT SP500 SDS 12,111
US Stock Index  PROSHARES ULTRA SP500 SSO 7,771
Int’l Stock Index  ISHARES MSCI EMERGING MARKETS EEM 246,173
Int’l Stock Index  ISHARES FTSE CHINA 25 INDEX FU FXI 121,235
Int’l Stock Index  ISHARES MSCI BRAZIL INDEX EWZ 44,995
Int’l Stock Index  ISHARES MSCI EAFE INDEX EFA 44,297
Int’l Stock Index  ISHARES MSCI JAPAN INDEX EWJ 10,524
Int’l Stock Index  ISHARES MSCI MEXICO INVESTABLE EWW 7,819
Int’l Stock Index  SPDR EURO STOXX 50 FEZ 6,698
Currencies  CURRENCYSHARES JAPANESE YEN TR FXY 7,591
Currencies  CURRENCYSHARES EURO TRUST FXE 6,304
Currencies  POWERSHARES DB US DOLLAR INDEX UUP 4,089
Sectors  MARKET VECTORS GOLD MINERS ETF GDX 92,632
Sectors  CONSUMER STAPLES SELECT SECTOR XLP 81,675
Sectors  FINANCIAL SELECT SECTOR SPDR XLF 80,477
Sectors  ENERGY SELECT SECTOR SPDR XLE 25,503
Sectors  ISHARES DOW JONES US REAL ESTA IYR 25,320
Sectors  UNITED STATES NATURAL GAS UNG 25,101
Sectors  DIREXION DAILY FINANCIAL BULL FAS 22,501
Sectors  SPDR SP HOMEBUILDERS XHB 18,717
Sectors  HEALTH CARE SELECT SECTOR SPDR XLV 17,088
Sectors  SPDR SP OIL GAS EXPLORATION XOP 16,123
Sectors  MATERIALS SELECT SECTOR SPDR XLB 14,505
Sectors  COMMONWEALTH REIT CWH 12,525
Sectors  UTILITIES SELECT SECTOR SPDR XLU 8,937
Sectors  NORTHSTAR REALTY FINANCE NRF 8,428
Sectors  TECHNOLOGY SELECT SECTOR SPDR XLK 8,266
Sectors  ANNALY CAPITAL NLY 8,213
Sectors  SPDR SP RETAIL XRT 6,054
Sectors  DIREXION DAILY FINANCIAL BEAR FAZ 5,180
Sectors  INDUSTRIAL SELECT SECTOR SPDR XLI 3,940
Sectors  SPDR SP METALS MINING XME 3,625
Sectors  ISHARES NASDAQ BIOTECHNOLOGY IBB 3,430
Commodity  SPDR GOLD SHARES GLD 99,983
Commodity  ISHARES SILVER TRUST SLV 56,076
Commodity  PROSHARES ULTRA SILVER AGQ 5,560
Bond  ISHARES BARCLAYS 20+ YEAR TREA TLT 44,048
Bond  ISHARES IBOXX $ HIGH YIELD COR HYG 24,855
Bond  PROSHARES ULTRASHORT 20+ YEAR TBT 22,436
Bond  ISHARES BARCLAYS 7-10 YEAR TRE IEF 5,988

Figure 1 – ETFs with active option trading volume

Remember, there are likely more opportunities available on this list than you can possibly use.

So let’s focus, people!

Jay Kaeppel

 

One thought on “A Handy List for Option on ETF Traders

  1. You make a point about how having so many options can be a good thing and a bad thing. The market can get watered down if you aren’t careful. I really think you should know what you are doing before trying to trade this way.

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