Exploring ETF Options
08/29/06 - 12:17 PM EDT
Katie Benner
The market-going looks rough for the rest of the year, but that doesn't mean it's time for the beginning investor to bail.
Instead, it may be time to delve into the index-trading market, says Tom Gentile, senior vice president and chief options strategist at Optionetics, an online provider of portfolio strategies, investment education services and market analysis. The index-trading market that Gentile refers to includes exchange-traded funds, index options and ETF options. "If you look at the Philly, the Amex, the CBOE and the CBOT, these indices have been getting a lot of attention," says Gentile. "We wanted to make it apparent that these indices are here, and that they are another way to hedge against risk." To that end, he and Optionetics partner George Fontanills recently published their third book, The Index Trading Course, which seeks to provide investors with a rudimentary knowledge of options and includes ideas about how to buy and sell index-based products. The book also examines risk management, trade adjustments and how best to track and trade volatility. Gentile has been in the options trading game for 13 years and was previously a divisional coordinator for financial-service training at Home Depot(HD Quote - Cramer on HD - Stock Picks) prior to joining Optionetics in 1995. He sat down with TheStreet.com to talk about what to look for in an ETF, options trading and where the money will head in the months to come.
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