Options Overview

Options are financial contracts that give their buyer the right to buy or sell a stock at a predetermined price. Options are also known as derivatives, as their prices are a function of their underlying instruments.

According to exchange figures, ETFs now account for about 70% of all equity option volume. More people trade options on ETFs than they trade options on individual stocks. Options are used by investors to not only hedge a portfolio but to speculate on future price movements.

Daily Hot Reads

Wednesday Hot Reads: Will New FANG-Themed ETF Bite You?

Also, how to use ETF options for regular income.

Daily ETF Watch

ETF Watch: Horizons Plans Covered Call Fund

The ETF would join two other similar funds from the company.

Daily Hot Reads

Thursday Hot Reads: Home Bias Blues

Why it’s important to look outside the U.S., and why investors are buying into a pricy ETF. 

Features and News

15 ETFs With The Most Liquid Options

The largest ETFs don't always have the most liquid options markets.

ETF Report

Options Essentials For Advisors

A guide to the different ways investors can use options to enhance their portfolio performance.

ETF Report

How Financial Advisors Use & Think About Options

A summary of a study by Cerulli Associates.

Daily ETF Watch

ETF Watch: 2 Closures Announced

Barclays’ iPath arm already closed down an ETN this month, while ALPS will shut down its put-write ETF.

Daily ETF Watch

ETF Watch: Aptus Plans 2nd Fund

An ETF newcomer plans the launch of its next fund.

Index Investor Corner

Swedroe: Complexity In Funds Will Cost You

The use of leverage, options and short sales can be a drag on returns.