Posted by 1800promote on 5th of Jun 2009 at 01:50 pm
Be carefull...over a very long period of time that might be true
but you must be able to support huge losses.
For example considering shorting SRS and URE exactely 1 year ago
100k each..yes you would have a nice profit now...but when SRS
peaked in november you were looking at almost 300k loss
Posted by depietri1 on 5th of Jun 2009 at 02:09 pm
I agree it is risky but that's why I say buy puts just a little.
Or say short srs 50 shares at 200 then 10 more at 300 then 50 more
at 400 and hold on for the ride. As long ur
account has the equity to cover and hold . The ultra
shorts always de-value. Faster than then they go up.
I was told this by TS. Should the shares no longer be available
for shorting, they can just cover your shorts... and if this is
done in a period of drawdown, then you are left holding the bag.
Plus if they cover the one which is about to go down, while the
other one is about to go up, and you are not immediately out of the
other one, then you just lost your hedge....
Next time the mkt drops
Posted by depietri1 on 5th of Jun 2009 at 12:32 pm
Next time the mkt drops BIG all we need to do is buy puts on all 2x's &3x's ETF with the longest time possible
sell in May and go away ETF style
Posted by cdjd on 5th of Jun 2009 at 12:46 pm
Plan: Sell Short same amount of money of URE and SRS (not LONG!) then go away for a few months and then cover your two short positions.
Any other overnight or longer strategy with the 2X and 3X ETF's is mathematical insanity.
Be carefull...over a very long
Posted by 1800promote on 5th of Jun 2009 at 01:50 pm
Be carefull...over a very long period of time that might be true but you must be able to support huge losses.
For example considering shorting SRS and URE exactely 1 year ago 100k each..yes you would have a nice profit now...but when SRS peaked in november you were looking at almost 300k loss
I agree it is risky
Posted by depietri1 on 5th of Jun 2009 at 02:09 pm
I agree it is risky but that's why I say buy puts just a little. Or say short srs 50 shares at 200 then 10 more at 300 then 50 more at 400 and hold on for the ride. As long ur account has the equity to cover and hold . The ultra shorts always de-value. Faster than then they go up.
One more risk
Posted by mamaduck on 5th of Jun 2009 at 02:06 pm
I was told this by TS. Should the shares no longer be available for shorting, they can just cover your shorts... and if this is done in a period of drawdown, then you are left holding the bag. Plus if they cover the one which is about to go down, while the other one is about to go up, and you are not immediately out of the other one, then you just lost your hedge....
No so fast delpietri, make yur
Posted by hornsant on 5th of Jun 2009 at 12:37 pm
No so fast delpietri, make yur due d because the time dacay in the options of these darlings is far worse than holding them.
has anyone tried buying and
Posted by bkout3 on 5th of Jun 2009 at 12:44 pm
has anyone tried buying and holding short pairs (like short both QLD and QID etc)?
It is a good idea
Posted by hornsant on 5th of Jun 2009 at 01:01 pm
It is a good idea but you have to find a broker that has them to short