the IBB (iShares Nasdaq Biotechnology Index Fund ETF) that i’ve been posting my not be available to short by some brokers. my primary trading account is with interactive brokers, who typically has the best availability of shares to short on less-actively traded companies and etf’s. also keep in mind that for those trading or investing in IRA’s, shorting is not allowed. therefore, you basically have two options: buy puts on the IBB or use the BIS (ProShares Ultra Short Nasdaq Biotechnology ETF).
please note that this is a very thinly traded etf and a such, there is a very large spread associated with this etf. therefore, i highly suggest the use of limit orders vs. market order when trading this particular etf. my preference is usually to split the difference between the bid and the ask price, maybe rounding my buy or sell limit price slightly closer to the side of the trade that am i looking to fill (closer to the ask price on a buy order, closer to the bid price on a sell order). also note that i may tweak these targets as/if the trade starts to play out in order to more closely match them with the price targets that i have listed for the IBB. finally, although i am listing this trade as an active short and a short setup (for now, as it still offers an objective entry), please remember that you will buy this etf (i.e.- a long-side trade) in order to be short the biotechs. in other words, don’t short the BIS even though it is listed as a short trade idea.