Taking a Closer Look at the Triple ETF Options Landscape

Since I find myself increasingly active in trading options in triple ETFs, I thought readers might find it interesting to see a graphic of some important options data on the triple ETFs currently in the market.

Utilizing data from iVolatility.com, the spreadsheet below (click to enlarge) captures the average options volume, open interest and current implied volatility for the 12 pairs of triple ETFs. I have separated the ETFs into four groups: broad index ETFs (market cap focus); sector ETFs; geography ETFs; and bond ETFs. I have also color coded the top five pairs in terms of liquidity in green, with two additional pairs highlighted in yellow that I believe are liquid enough to trade, though they do not yet have the following of the “big five.”

I will refrain from additional comments, other than to note that I believe a lot of additional information of interest can be gleaned from this relatively simple graphic.

For a related post, see: Using Options to Control Risk in Leveraged ETFs

[source: iVolatility]

Comments

[mark diodati:]

how do you decide if they are liquid enuff to trade?

mark diodati
[e-mail]

Aug 31 03:20 PM