whatanorder!

25 Options Strategies for a Bullish or Flat Market

It would have been except that the last 3 mos, since volatility has fallen, they've pretty much tracked their indices. I actually did this & it worked fairly well for awhile.
:-)


On Jun 02 07:34 PM djj420 wrote:

> Before I even say anything else, I DEFINITELY do not understand the
> bond market. But this comment thread seems an appropriate enough
> place to ask this question:
>
> If FAZ and FAS both underperform their goals of 3x their index because
> of daily rebalancing, would shorting them both together be an easy
> way to exploit their inherent weakness?

FAS and FAZ: A Short-Seller's Dream?

I have shorted these as intermediate term hedges. Nothing is riskless & the risk here is that as volatility falls this trend will reverse, i.e., both fas & faz may outperform their respective indices. I've already noticed that happen to some extent as vix falls. I have seen similar problems shorting the options. As always a VERY sophisticated trader (not me) can continue to use these to his/her advantage, but the rest of us need to stay on our toes.
:-)