Options trading available on cannabis ETF

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The Cannabis ETF offered by Innovation Shares now offers put and call options

Innovation Shares, which is behind several exchange-traded funds (ETF), is making some changes to it’s the Cannabis ETF option. As of the end of last week, options can now be traded on the NYSE American Options and the NYSE Arca Options markets, giving investors the ability to submit put and call options for the ETF.

The fund tracks the Innovation Labs Cannabis Index, which is a monthly-rebalanced ETF that holds 35 different cannabis-related stocks. It is passively managed and offers management fees of just .70%, which is lower than both The AdvisorShares Pure Cannabis ETF and the ETFMG Alternative Harvest ETF, both of which are traded on the New York Stock Exchange. Their management fees are 0.74% and 0.75%, respectively.

The ETF itself, which was launched about two weeks ago, is listed on the NYSE Arca exchange and the new components give traders more investment options to keep their portfolios going strong. CNBC’s Jon and Pete Najarian have both commented on the fund, saying that it is “going to be a $1-billion cannabis ETF.”

According to Innovation Shares Managing Director Matt Markiewicz, “As the cannabis sector attracts more institutional investors and professional traders, having options available on THCX is an important step in building the fund’s position as the go-to capital markets tool for cannabis exposure. We are extremely encouraged thus far by the trading volumes in THCX and having options list this soon after the launch of the fund signals to us that investor reception of this pure-play cannabis ETF has been very positive.”