ETF Futures And Options
Definition of 'ETF Futures And Options'A variety of derivative products based on exchange-traded funds. ETF futures are contracts that represent an agreement to buy (or sell) the underlying ETF shares at an agreed-upon price on or before a specified date in the future. ETF options, on the other hand, are contracts that give the holder the right, but not the obligation, to buy (or sell) the underlying ETF shares at an agreed-upon price on or before a specified date in the future. These products are typically used when you adopt a bullish or bearish outlook on the economy or an industry as a whole, over individual stocks. |
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Investopedia explains 'ETF Futures And Options'On March 1, 2011, the CME Group issued a report indicating a delisting of futures on ETFs, specifically, the Nasdaq-100 Tracking Stock, Standard & Poor's Depositary Receipts and iShares Russell 2000 will be delisted following their March 2011 expirations. On March 26, 2012, CBOE Crude Oil ETF Volatility Index security futures (OV) began trading and options on the OVX Index began trading the next month, on April 10, 2012. |
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