VP of Common Sense

7 ETFs to Short Right Now

I forgot the overriding effect of being short, which is the maximum gain is 100% unless one expands their position regularly.

7 ETFs to Short Right Now

I use SSO a lot and have wondered about the time decay factor for a while. This morning I sat down and put a 60 day "fake" sequence into excel where every 15 days the value worked it's way back to the starting point. The amount of down days and up days were equal. The decay worked out to 1.0% over 60 days for the "double long fund" and 2.7% for the "double short fund". The triple long/short decays were 2.6% and 5.4%.

In practice, I can assure you that SSO does decay over time vs. the S&P, however it's made me enought money that so far I haven't really cared. Now I may change my strategy.