What kind of funds buy options instead of stocks?

3 Answers

  • 2 months ago

    I am not sure I know of any funds that buy options instead of stocks.

    Certainly there are some funds that trade options as well as stocks. The answer given by fcas80 gave you some funds that trade options as well as stock, but it appears they concentrate on selling (writing) options instead of buying them in order to increase income by collecting options premiums.

    I also would be fairly sure that leveraged index funds (such as those that strive to achieve twice the SPY returns) trade options as well as stocks. A relatively simple way to accomplish twice an index returns would be to establish a gamma neutral spread by buying and selling options on the same index then adjusting the delta of the spread by trading the index or futures contracts on the index. 

  • Anonymous
    2 months ago


  • fcas80
    Lv 7
    2 months ago
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