Balaji Viswanathan

Explaining Inverse and Leveraged ETFs

Daniel,
I have tried a few times shorting SKF and it worked for me better than going long in UYG. A couple of times, I went short in both UYG and SKF and exploited arbitrage opportunities during the period of heavy volatility in September. But, then after the short ban from SEC, I found this strategy tough. I then focused a bit on shorting DIG.

These days I'm avoiding UYG altogether and playing only with SKF - if I want to short it, I buy puts, and if I want to long - I sell puts.