Replies to post #640 on ProShares Short VIX Short Term Futures ETF (SVXY)

[Toofuzzy]

37

If you are BUYING the CALL option you do not own the underlying till you call it and then own it.

Any fees on an ETF are invisible to you and either reduce the distribution before you see it or if no income like on GLD it would reduce NAV ( Which it does regardless as distributions reduce NAV at time of distribution also I suppose)

[Marketwise]

37, I think you now have a clearer understanding with respect to your original question. The premium for ALL options (including ETF options) is worked into the price of the options contract. My apologies for any confusion in the matter. The reasons for my advice to always play the long side of any options trade should be obvious, I think, to any sound minded trader (which it appears that you are) with a basic understanding of the options market....:)