Fitz919

Cramer's Lightning Round - ProShares UltraFinancials Is a Hoax (6/12/09)

The Ultra Shorts/Longs are very interesting to me. I've traded them extensively. One of the problems no one is addressing, is the fact that new shares are being created all the time. This lowers the price. Look at FAS and FAZ, they are around $10 and $5, and the daily share volume traded is astonishing. I realize that many daytraders can be in and out of these things dozens of times in a day...I've done that many times myself...so that can really pump up the daily volume.

Holding any of these overnight is foolish, your value will always erode. They are designed for single day use...that way you don't suffer the effects of share dilution and decay.