UltraShort FTSE/Xinhua 25 Proshares (FXP)

All Comments on FXP

  • commenter
    cmetrader
    Sep 29 10:21 PM
    Options Trader: Monday Outlook [view article]
    The issue with Phil's articles is that he is over here whoring himself to drive people to his site which has blatant lies on it such as 50% weekly market gains. Every week he boasts of something ridiculous like this. He would be a billionaire if that was accurate. He forgets to mention those gains come after 15 "rolls" and that he true profit is actually a loss. Just ask his stock club members! So, in order to protect the retards from buying into this and losing money, we post comments here. Reply
  • commenter
    RainyDay
    Sep 29 05:45 PM
    Double Short ProShares ETFs [view article]
    Does anyone know why the ProShares DXD UltraShort ETF dropped 6.14% overnight from Sep 23rd to Sep 24th? The Dow Jones Industrial Average only moved up 0.20%, so the the DXD should have only dropped about 0.40% (twice the inverse). I could understand if the DXD occasionally lost a half of a percent with respect to its base index, but 6% in one night ????? Did ProShares take 6 years worth of fees that night? It certainly reduces the feasibility of achieving any gains from this ETF. Reply
  • commenter
    Dr
    Divergence
    Sep 29 03:53 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Thanks. Great answer, and I agree with you. Reply
  • commenter
    Richard Shaw
    Sep 29 02:17 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Dr. Divergence:

    This is uncharted territory. Closest example may be the INP exhange traded note from Barclays that stopped issuing creation units when India temporarily stopped certain foreign investments. That went way out of wack.

    In this case the instruments used to fund the inverse fund are most likely of definite term, except for their actual stock shorts. The derivatives will expire and the fund will become less short. Until the next report, we won't know how many if any actual stock shorts they have.

    Absent actual stock shorts the fund assets will be in run-off and would eventually be all cash or government debt instruments. In a rational world, the price would approach the NAV in that case.

    The expectations for future actions by Congress would probably be key, but I have no idea what those actions would be or how the market would respond.

    Today when the bailout vote failed the SPY was off nearly 7%.

    SKF is up 18+% as of the moment with nearly 16 million volume. XLF is down 11+% with 52 million volume, so the 2x leverage is approximately working for the moment.     Reply
  • commenter
    junkyarddog
    Sep 29 01:32 PM
    Options Trader: Monday Outlook [view article]
    I see Phil's articles at Seeking Alpha as an incredible help to the average American, which is provided free of charge. I don't use Phil's options recommendations (they aren't posted hare anyway), so why don't you write your complains where they belong, i.e. Phil's stock world? Reply
  • commenter
    Dr
    Divergence
    Sep 29 01:29 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Point taken, Richard. Good article. Do you have any views about the tracking error issue in SKF et al now that they are unable to issue new creation units due to the short ban? Reply
  • commenter
    Richard Shaw
    Sep 29 01:21 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Dr Divergence

    I said it "exposes" short investor to interest. That is meant to convey that interest "could" be a factor if the trade goes against the investor to create a margin call.

    The point is correct about the "potential" for interest cost, which is not a potential cost with a non-margined long position in an inverse fund.     Reply
  • commenter
    Dr
    Divergence
    Sep 29 12:58 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Your point #6 is factually incorrect. No interest is paid on a short sale. The sale takes place in a margin account and the short SALE generates a free credit in the account. Generally the broker will credit the short selling customer with somewhere from 50% to 70% of the interest earned on the free credit, subject to negotiation based on account size, trading frequency etc. Reply
  • commenter
    theeejew
    Sep 29 11:34 AM
    Options Trader: Monday Outlook [view article]
    I was wondering if the Emergency Economic Stabilization Act of 2008 will provide any relieve to the members of Phil Stock Club , where small investors lost under Phil's leadership and trading skills 100 % of their investments in merely 100 trading days. Reply
  • commenter
    FreeMktAdvoc
    ate
    Sep 24 02:08 AM
    Double Short ProShares ETFs [view article]
    The double inverse track the double inverse of the DAILY price movements of the inverse. In the case of SRS it tracks the double inverse movement of IYR (The Dow Jones US Real Estate Index). The important thing to remember is that the fund is born and dies every day and does not correspond to price points with IYR. I.e. if one day IYR was at 100 and SRS at 200 then another day when IYR approaches 100 SRS could be at $150. The fact that a % down has more of a negative effect than a % up, SRS will tend to trade downward over time. Accepting this fact then you find that the leverage on this ETF actually works AGAINST you over time and should therefore be avoided unless you think there will be a sustained downward trend in IYR.


    On Sep 19 02:38 PM mamie wrote:

    > if you find out anything please let mo no
    >
    >
    > On Aug 24 10:14 PM johnthebear wrote:
    >
    > > CAN ANYONE EXPLAIN HOW THE DOUBLE SHORT ETF BY PROSHARES WORKS?
    > IS
    > > IT SAFE? I OWN FXP AND SRS, BUT IT KIND OF SCARES ME.
    > >     Reply
  • commenter
    mamie
    Sep 19 02:57 PM
    Options Trader: Thursday Outlook [view article]
    great i was worried


    On Sep 19 02:45 PM johnthebear wrote:

    >
    > I wish there was a way to understand the mechanics of FXP/SRS, David
    > Fry met with ProShares about a month ago and I asked him to check
    > it out for me, but he has not responded with an answer that I am
    > aware of. So far, it works as advertised.
    >
    > At least exchange traded funds such as we have are not affected by
    > the new short sell rule on financial's.     Reply
  • commenter
    johnthebear
    Sep 19 02:45 PM
    Options Trader: Thursday Outlook [view article]

    I wish there was a way to understand the mechanics of FXP/SRS, David Fry met with ProShares about a month ago and I asked him to check it out for me, but he has not responded with an answer that I am aware of. So far, it works as advertised.

    At least exchange traded funds such as we have are not affected by the new short sell rule on financial's.
    Reply
  • commenter
    mamie
    Sep 19 02:38 PM
    Double Short ProShares ETFs [view article]
    if you find out anything please let mo no


    On Aug 24 10:14 PM johnthebear wrote:

    > CAN ANYONE EXPLAIN HOW THE DOUBLE SHORT ETF BY PROSHARES WORKS? IS
    > IT SAFE? I OWN FXP AND SRS, BUT IT KIND OF SCARES ME.
    >
    > PLEASE HELP ME OUT HERE.     Reply
  • commenter
    mamie
    Sep 19 02:36 PM
    Options Trader: Thursday Outlook [view article]
    please when you find out i have shares of fxp hoping it will go up when the market takes a dive next week.mamie.please send me an e-mail if you find out anything hairproductsetc@aol.co... Reply
  • commenter
    johnthebear
    Sep 19 12:05 AM
    Options Trader: Thursday Outlook [view article]
    Wednesday, FXP is up $30. Next day, (Thursday) FXP is down $35 to $108

    So how will proposed rules on short selling affect FXI/FXP and IYR/SRS?

    Should I stop using Proshares anyone?     Reply
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