Exotic Tickers for the Average Joe
March 26th, 2007 by Grant in: Investing, Stock ThoughtsI’ve been looking for some ways to exploit the more advanced aspects of the stock market without having to devote the time and resources to run with the more experienced bulls.
Take for instance the ProShares UltraShort Midcap, QQQ and Dow30 funds, in which the focus is to short the respective market, however to participate, you go long the fund.
Along those same lines, my good buddy Winston pointed me to the S&P Covered Call Fund (BEP: chart, Y!, ETFconnect) in which the fund sells covered calls not against stocks, but against the S&P 500 index. The result is good income with downside risk matching overall market risk.
It’s something to look at, anyway. On top of the healthy appreciation in value over the last 8 months or so, it also pays a nice $1.00 dividend twice annually, resulting in a yield of around 9.7%.
It’s a little more exotic than I’m used to, and it’s pushing on my knowledge of the markets, but in period in time where the direction of the economy is in limbo, it may be wise to explore some of these more intricate ways to play the market.
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March 28th, 2007 at 8:41 pm
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