The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey guys. Welcome back to the daily call. This question came in from somebody who submitted a question online after we just got started and launched this podcast. Very cool that you guys did that. If you have questions or topics you want me to cover, head on over to optionalpha.com/ask and that’s the best way to leave me a message. But the question was, “Kirk, it looks like you prefer ETFs versus stocks.” The big question here is should you trade ETFs or stocks. I would be totally open in saying yes, I prefer ETFs over stocks given the choice. Given the choice, meaning if we’ve got a market that all has implied volatility that’s high or all has low implied volatility and nothing is really discernibly better or worse than the other, then yeah, of course I’d prefer ETFs over stocks. The tradeoff that you make in doing this is that with ETFs, we know that they’re going to be less volatile, so does the market, so does everyone else. Option premiums on ETFs might be a little bit lower than option premiums on a sto