drnadig
Being an active derivatives trader often means that you keep a sufficiently large cash position. Trading P&L changes the size of this cash pile and ideally this pile grows over time. I trade options quite frequently and have been keeping my
TFLO And USFR: Derivatives Trader Essentials
Summary
- iShares Treasury Floating Rate Bond ETF and WisdomTree Floating Rate Treasury Fund ETF are stable ETFs that pay monthly dividends sourced from floating rate U.S. treasuries.
- These funds are essential for traders to be aware of as they offer a way to earn compound interest on cash positions.
- TFLO and USFR provide stable collateral for derivatives traders and can be used as a way to wait for a market pullback or raise cash before a crash.
Cogent investment views on digital assets, macro, and derivatives. BTC Maxi. My investment philosophy centers around deep fundamentals, impactful narratives, and Austrian economics. Time horizon is the primary dividing factor for investment research. Long-horizon research will focus on digital assets, macro, and general value opportunities. Emphasis is placed on a global, long-run macro view as the basis for these investment considerations. Short-horizon research will focus on options and volatility for income generation and hedging.Personally, I do business development and communications for a decentralized finance (DeFi) startup that brings capital efficient spot and derivatives trading to crypto. I have a few years of investing experience, a strong finance and economics background, and working proficiency in Python programming.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of USFR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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