Since the VV Confirmed Buy the account buying SSO, QLD & IWM is up $3,577.02
The account that sold short the opposed issues SDS, QID & TWM is up $6,389.07.
The good news:
There is no doubt in my mind that because of the time decay that these leveraged funds will have because of the instruments they use to get the leverage you'd be better off using the opposed shorting position.
The bad news:
I spoke to Scottrade today and the chances of holding a position for any length of time will likely be close to zero because of the fact that you're using borrowed shares to short.
Bottom line is it works but likely can't be used!
JDJ
Leveraged ETF's vs. selling the opposed ETF
Started by
jdjimenez
, Jan 22 2014 08:56 PM
2 replies to this topic
#2
merciless
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Posted 22 January 2014 - 09:14 PM
No question shorting the leveraged ETF is better than buying the opposing long because of the time decay. Check out any of these over time. Problem is getting the shares too short. Tried to short
DUST in mid Dec and Merrill didn t have the shares...probably all in some hedge fund
#3
jdjimenez
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- Traders-Talk User
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Posted 22 January 2014 - 09:45 PM
No question shorting the leveraged ETF is better than buying the opposing long because of the time decay. Check out any of these over time. Problem is getting the shares too short. Tried to short
DUST in mid Dec and Merrill didn t have the shares...probably all in some hedge fund
I experienced the same thing a while ago. I was able to short 2 of the 3 ETF's but I only held those 2 for two days. I was sent a message no shares available on the third issue.
In a sideways market like we are currently in I think it would be a great advantage, to bad it can't be done without fear of losing the position.
JDJ
