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Trading Options on Funds

Trading Options on Funds

Trading Options on Index Funds or ETFs

BUBB’s chart looks about like The Rocky Mountains at sunset if you’re standing on a dozen margarita blenders. Volatile. But if you want to live past age 40 as a trader, sometimes less volatile instruments are preferred. So you just pick an index – 100 stocks in a basket are less volatile than any one stock.

Trading index options is usually a reflection of other factors in a portfolio. Yeah, traders do naked exposures to market movements and do specu...

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