The highest volatilities right now are in the Jr. Gold Miners (GDXJ) and Semiconductors (SMH). The lowest are Industrials (XLI), Utilities (XLU), and Staples (XLP). Over the past month, most ETFs have been increasing in volatility, which is unusual considering the market is increasing.
See our snazzy list below:
If you want a boring portfolio, without a lot of movement, check out the symbols at the bottom of the list. The volatilities are all quite low right now. Notice that XLI had some crazy high Volatility (IV) three months ago.
For context - SPY has around 17.5% Implied volatility currently, so a basket of XLB, XLV, IYR, XLI, XLU, and XLP would have a lower beta/volatility than the S&P 500.
ETHA = Ethereum ETF
The Ethereum ETF (ETHA) has gone from pretty bad / untradeable to being quite liquid.
Two Trade Ideas
ETHA ($23.14) Skewed Iron Fly (AUG) $3.60 Credit
ETHA is an Ethereum ETF; it's the most liquid of the bunch with liquidity picking up into the recent rally. It's hard to buy near recent highs... but volatility is high and skewed to the upside, so maybe a slightly long delta/short volatility position is in play. Short the 25 straddle, with wings at 17/30, trades at around $3.60 with slightly long delta and minimal risk to the upside.
GDXJ ($68.22) Short Strangle (AUG) $2.17 Credit
GDXJ is the highest volatility ETF on the board - it's a gold miner ETF with a high correlation to Gold (GLD, /GC). Gold has chopped around for a couple weeks now, if you think it might continue that way, short some OTM premium would fit the bill. Short the 64/74 strangle at around the 25 delta option on either side for a net credit of $2.17 using around $1000 in BP.
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