BTW, the best way to play it is either with IWM puts ( theoreticaly unlimited risk), or with TWM, double inverse short fund, very limited risk.
Edited by ogm, 24 July 2007 - 05:06 AM.
Say Goodbye to RUT
Started by
ogm
, Jul 24 2007 05:02 AM
2 replies to this topic
#1
ogm
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Posted 24 July 2007 - 05:02 AM
I've never see a setup like this turn into a rally. But I've seen countless times it turn into an absolute massacre.
BTW, the best way to play it is either with IWM puts ( theoreticaly unlimited risk), or with TWM, double inverse short fund, very limited risk.
BTW, the best way to play it is either with IWM puts ( theoreticaly unlimited risk), or with TWM, double inverse short fund, very limited risk.
#2
Drano
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Posted 24 July 2007 - 08:04 AM
Why do you say IWM puts have unlimited risk? All you can lose is your investment, same as buying TWM. 
Edited by Drano, 24 July 2007 - 08:05 AM.
#3
ogm
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Posted 24 July 2007 - 08:34 AM
Why do you say IWM puts have unlimited risk? All you can lose is your investment, same as buying TWM.
You can lose 100% of your investment in IWM, but with TWM you can stop out a a new low, for a 10% loss. Of course gain isn't the same as on puts, but the risk isn't as bad either.
