squark62

Triple-Levered ETFs: Bomb Shelters, or Bomb-Making Kits?

hi paul,

i see this post has bee out for a minute but i'll comment any way. for an trader who doesn't do options, i think leveraged etfs in this type of market are a great way to hedge and/or make money by doing a delta neutral arbitrage. i've made out fairly well doing over the last 6 weeks with arbitrage scheme i developed by pitting sector based long & short etfs against each other. like anything else, it requires discipline and patience but it has worked for me - i don't trade options. i primarily use 2X etfs that are tightly coupled to each others relative changes. my favorite pairs are SKF-UYG and QID-QLD. plus, these etfs pay dividends and cap gains while you trade them.