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3xBear
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Third lifetime as a trader. First was pure rookie '97-'01. Rode the RagingBull.com express. What times. Blow out gains followed by blowout losses. Primarily on penny stocks. Second was March '09 to Dec '11, rinse, repeat with learning how to trade options -- everything, every which way. Over... More
  • 3x Bear strategy 0 comments
    Oct 11, 2011 7:51 AM | about stocks: TZA, FAZ, YANG, BOM, DTO, COWS, MATS, EDZ, DUST, LHB, MIDZ, SOXS, SMN, FXP, EEV, JPX, DUG, TWM
    Will attempt to detail my strategies here as a swing trader that's short the Bear 3x etf's.

    Am short FAZ via long puts and sold calls for Jan. Looking to get Delta neutral in the ST for a fall of bank stocks. I figure a morning dip gets bought ahead of earnings, good ones by AA after market, and by JPM ahead of tomorrow, pop XLF enough. There will be looking to get delta neutral on FAZ by going long the underlying (vs the Jan short options I hold).

    Am now short TZA the same way via options, and figure to do the same with long the underlying, but not sure of the timing yet. GOOG after Thur and AAPL after Mon could keep the techs going. With TZA, am long 10 Oct 37 puts. Am looking to roll those forward or establish further month positions.

    Others as potential candidates for this strategy:  YANG, BOM, DTO, COWS, MATS, EDZ, DUST, LHB, MWN, SOXS, SMN, FXP, EEV, JPX, DUG, TWM.

    Some of these will be discarded because of a lack of liquidity, but these are candidates based on their being trend and contango candidates, where a high negative delta strategy works well with their 3Q gains and their prices being at least above $20, preferably higher than $40.




    Themes: 3x ETF Stocks: TZA, FAZ, YANG, BOM, DTO, COWS, MATS, EDZ, DUST, LHB, MIDZ, SOXS, SMN, FXP, EEV, JPX, DUG, TWM
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