How to trade ETF volatility

摘要

Since the first option on an exchange-traded fund (ETF) was launched on the American Stock Exchange in 1998, followed by the Chicago Board Options Exchange in 2000, the market segment has grown steadily in popularity. Investors now benefit from a wide range of ETF underlyings, from U.S. equity indexes to all kinds of stock-, bond- and commodity-based ETFs. However, quite a few ETF options still exhibit low trading volume. Many ETFs are quite specialized and, therefore, cover specific market segments that interest only a few investors.