10 replies to this topic

[ChickenLittle]

Why is the liquidity so much better in SDS than SSO????

[Darris]

LMAO, folks love shortin a Bull market, LOL. Same with QID. Sorry.

Edited by Darris, 16 July 2007 - 07:39 PM.

[ChickenLittle]

Take today for an example, the volume in QID was about 15 times greater than QLD. That's a BIG difference. Since one can go long or short in either of these stocks and achieve the same approximate result (but not exact), there must be a reason for the volume difference. I'm thinking the volume is higher in the ultra shorts because of options and/or futures (???) but I don't understand the exact why. Maybe someone could 'splain it to me. The percentage return is not greater in the cheaper QID than the QLD. For instance, the time period of June 26 to the present (no dividends during that period) found that the gain in QLD was about 1% higher than the short of QID. If I screwed up the calc please advise and if anyone has a better insight into this please elaborate.

[Rogerdodger]

My guess is that people are long individual stocks and use the short sds and qid to hedge.

[ChickenLittle]

My guess is that people are long individual stocks and use the short sds and qid to hedge.

And that's why the huge volume diff. Makes sense

Thanks RD

[Drano]

Take today for an example, the volume in QID was about 15 times greater than QLD. That's a BIG difference. Since one can go long or short in either of these stocks and achieve the same approximate result (but not exact), there must be a reason for the volume difference. I'm thinking the volume is higher in the ultra shorts because of options and/or futures (???) but I don't understand the exact why. Maybe someone could 'splain it to me.

The percentage return is not greater in the cheaper QID than the QLD. For instance, the time period of June 26 to the present (no dividends during that period) found that the gain in QLD was about 1% higher than the short of QID.

If I screwed up the calc please advise and if anyone has a better insight into this please elaborate.

QLD 103.85
QQQQ 49.85

Why mess with the 2x fund when it costs twice as much as the real thing, so you can just buy twice as many Q shares -- especially since there is so much liquidity with the Q's that you can get in and out instantly. Also, if people want to short in retirement accounts and are not allowed to do so (or to buy options), they have no choice but to use the inverse ETFs.

[vitaminm]

http://etf.seekingal...m/article/22594


http://www.elitetrad...?threadid=89133

[ChickenLittle]

http://etf.seekingal...m/article/22594


http://www.elitetrad...?threadid=89133

Thanks for the great info.

[vitaminm]

Take today for an example, the volume in QID was about 15 times greater than QLD. That's a BIG difference. Since one can go long or short in either of these stocks and achieve the same approximate result (but not exact), there must be a reason for the volume difference. I'm thinking the volume is higher in the ultra shorts because of options and/or futures (???) but I don't understand the exact why. Maybe someone could 'splain it to me.

The percentage return is not greater in the cheaper QID than the QLD. For instance, the time period of June 26 to the present (no dividends during that period) found that the gain in QLD was about 1% higher than the short of QID.

If I screwed up the calc please advise and if anyone has a better insight into this please elaborate.

QLD 103.85
QQQQ 49.85

Why mess with the 2x fund when it costs twice as much as the real thing, so you can just buy twice as many Q shares -- especially since there is so much liquidity with the Q's that you can get in and out instantly. Also, if people want to short in retirement accounts and are not allowed to do so (or to buy options), they have no choice but to use the inverse ETFs.

look at % CHANGE

Columnar
Symbol Time Trade Change % Chg Volume Intraday Related Info
QQQQ Jul 16 49.85 0.05 0.10% 77,799,493 Chart, Messages, , More
QLD Jul 16 103.85 0.11 0.11% 905,000 Chart, , More
QID Jul 16 41.75 0.05 0.12% 13,686,492 Chart, , More

[SilentOne]

My guess is that people are long individual stocks and use the short sds and qid to hedge.

This is something I like to do if I am holding a porfolio of stocks in a buy & hold mode. Buying SDS when things look toppy (like yesterday) helps me to keep my positions.

cheers,

john

Edited by SilentOne, 17 July 2007 - 05:32 AM.