- DOG is an inverse ETF that offers the inverse daily performance of the Dow Jones Index.
- DOG is an appropriate short-term portfolio immunization tool for those investors who expect further losses in the Dow Jones index.
- We explore how currently the cost of put options is uneconomical due to the high implied volatility in the index option chain.
- An investor would ultimately get only 3.52% downside protection via put options if the market tanks another -10% for an at-the-money 6 months put on the Dow Jones.
For further details see:
DOG: How To Short The Dow Jones Index