Posted by DigiNomad on 16th of Sep 2022 at 12:21 am
The only thing I would potentially disagree with here is the
"buy and hold leveraged short ETF's part. Short 1x ETF maybe,
leveraged ETF...bad idea...for many reasons. Basically, when
dealing with derivatives (or funds that are derivative based), you
don't want to be on the side that pays the premium. So, if
you want to express a short in the medium to long term, you
want a chart that goes from top left to bottom left, not bottom
right to top right. In the very short term, leveraged short ETF's
are great.
Digi - As derivatives decay in price over time, especially 3x,
Would a longer term short position strategy, in a leveraged ETF,
be to short the long 2x ETF?
For example: You want to hold a long term position in
SDS(2x short). Would it be better to short SSO(2x long)?
Because, they both decay over the long term.
Posted by DigiNomad on 16th of Sep 2022 at 01:40 pm
Auni, yes, I think that's correct but don't hold me to it 100%
because I create my own derivative instruments instead of using the
ETF's. I would have to know more about the specific instruments
that underlie the funds in questions. Your strategy appears
to take advantage of both the direction you're predicting and
option decay....which is potentially ideal.
Is your name Hawaiian? I lived on Oahu for 12 years. Don't
know Auni specifically but it sounds Hawaiian.
It means Golden Eye. It is a made up name I've used on
forums for a long time. I'm just an old white guy.
Ha!
I used to trade gold/silver options with my dad when I was in
college. It was during the Bunker Hunt days when they
cornered the silver market in the '70s and silver went to $50.
It was in the Aden sister era.
After college I took a year off and wrote a program (machine
language) that down loaded stock date from a modem connection and
could create a daily Horsey Chart rather than having to wait for
the monthly Horsey stock charts book to be sent to you from M.
C.Horsey Co. via the mail. Anyone remember Horsey stock
charts?
13 years ago my dad passed and I lost interest in daily trading.
Also lost interest in precious metals as I always believed
the markets were highly manipulated... we almost never were long,
we used options to short the metals.
The only thing I would
Matt - Does the go-long bell ring when the 15-min ...
Posted by DigiNomad on 16th of Sep 2022 at 12:21 am
The only thing I would potentially disagree with here is the "buy and hold leveraged short ETF's part. Short 1x ETF maybe, leveraged ETF...bad idea...for many reasons. Basically, when dealing with derivatives (or funds that are derivative based), you don't want to be on the side that pays the premium. So, if you want to express a short in the medium to long term, you want a chart that goes from top left to bottom left, not bottom right to top right. In the very short term, leveraged short ETF's are great.
Digi - As derivatives decay
Posted by auni on 16th of Sep 2022 at 11:35 am
Digi - As derivatives decay in price over time, especially 3x, Would a longer term short position strategy, in a leveraged ETF, be to short the long 2x ETF?
For example: You want to hold a long term position in SDS(2x short). Would it be better to short SSO(2x long)? Because, they both decay over the long term.
Auni, yes, I think that's
Posted by DigiNomad on 16th of Sep 2022 at 01:40 pm
Auni, yes, I think that's correct but don't hold me to it 100% because I create my own derivative instruments instead of using the ETF's. I would have to know more about the specific instruments that underlie the funds in questions. Your strategy appears to take advantage of both the direction you're predicting and option decay....which is potentially ideal.
Is your name Hawaiian? I lived on Oahu for 12 years. Don't know Auni specifically but it sounds Hawaiian.
Digi, It means Golden Eye. It
Posted by auni on 16th of Sep 2022 at 02:21 pm
Digi,
It means Golden Eye. It is a made up name I've used on forums for a long time. I'm just an old white guy. Ha!
I used to trade gold/silver options with my dad when I was in college. It was during the Bunker Hunt days when they cornered the silver market in the '70s and silver went to $50. It was in the Aden sister era.
After college I took a year off and wrote a program (machine language) that down loaded stock date from a modem connection and could create a daily Horsey Chart rather than having to wait for the monthly Horsey stock charts book to be sent to you from M. C.Horsey Co. via the mail. Anyone remember Horsey stock charts?
13 years ago my dad passed and I lost interest in daily trading. Also lost interest in precious metals as I always believed the markets were highly manipulated... we almost never were long, we used options to short the metals.
Take care,
Au-n-i
I've thought about that too.
Posted by mastermind on 16th of Sep 2022 at 11:36 am
I've thought about that too.