Option Activity in Sirius XM Presents Interesting Options [View article]
"Typically, the writers of option contracts are high rolling firms and individuals which have the power to suppress the stock prices so that the contracts expire worthless."
Yes, FAZ and FAS are on a fast pace to pennies as they oscillate to zero and their spikes get smaller. I can't believe how popular they are. Naive traders are mostly losing their asses on them. Just look at both charts. Avoid. Avoid. Avoid.
Same ole tiresome leveraged ETF bashing. If they're a "loser's game" then why not short them? Nobody complains when they exceed their 2x or 3x objectives when they trend in favor.
SDS paid $15.91 in dividends in 2008. Did you re-invest the dividends and include them in your comparisons? If they are destined to decline then why not short all of them?
Double and Triple ETFs Decay Their Value Faster, By Design [View article]
There isn't any tricky math going on here. 20% of $1000 is $200 and 20% of $800 is $160. If you think they're all going to zero then why not short them?
The leveraged ETF's are detrimental to the market -- huge money that once found its way into stocks is now going here. Money in these ETF's never gets invested in shares of companies. I suspect the SEC would like to see these go away.
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Option Activity in Sirius XM Presents Interesting Options [View article]
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Double and Triple ETFs Decay Their Value Faster, By Design [View article]
The leveraged ETF's are detrimental to the market -- huge money that once found its way into stocks is now going here. Money in these ETF's never gets invested in shares of companies. I suspect the SEC would like to see these go away.