I will point out that the symbol for the 'risk on' ETN is also the acronym for the Onion News Network.
From CNBC:
Fisher, Gartman: New Way to Bet on Volatility
Commodities traders Mark Fisher and CNBC contributor Dennis Gartman launched two exchange-traded notes (ETNs) on Wednesday that allow retail investors make quick wagers on the risk sentiment in the marketplace.
The securities—one for "risk on" and one for "risk off"—are a bet by the two veteran traders that global markets will continue to be subject to extreme day-to-day volatility.
“The Risk On ETN’s value is expected to rise when the outlook on markets and the broader economy is positive and to decrease when such outlook is negative,” according to a document by UBS, their partner in the new products.“The Risk Off ETN’s value is expected to rise when the outlook on markets and the broader economy is negative and to decrease when such outlook is positive.”The securities, based on a risk index created by the two through MBF Index holdings, began trading on the New York Stock Exchange Wednesday with the catchy tickers “ONN” [ONN 25.73 1.73 (+7.21%) ] and “OFF” [OFF 24.30 0.30 (+1.25%) ]. The Risk Off ETN tracks the inverse of the index....MORE
See also:
Feb 12, 2011
June 15, 2009
FAS and FAZ: A Short Seller's Dream?
April 14, 2009
When Leverage and Volatility Collide in ETFs (FAS, FAZ)
April 9, 2009
Direxion 3x Financial ETFs Go Certifiably Crazy (FAS; FAZ etc.)
FAS and FAZ: A Short Seller's Dream?
April 14, 2009
When Leverage and Volatility Collide in ETFs (FAS, FAZ)
April 9, 2009
Direxion 3x Financial ETFs Go Certifiably Crazy (FAS; FAZ etc.)
One approach is to short both of them, in effect writing an option. Ooops, have I said too much?