Dave,
True that they aren't meant for long term, which is why I'm considering a bear fund with a protective put.
In perspective though, the bull fund FAS was up 67% in the 3 months between Feb and May and TNA was up 47% in the same period, so although they may not do exactly as advertised they can be useful with careful handling. I think.
Lou
--- In ConservativeOptionS
>
> What you need to keep in mind with ultras is that they reprice themselves
> after the close - they mention this in their prospectus. If you look at them
> on a chart, you'll see that they don't really move 3x over time. I don't
> trade ultras because they are intended for day trading - not longer term
> positions.
>
> Dave
>
> On Wed, May 5, 2010 at 11:39 PM, Louis <loupi3@...> wrote:
>
> >
> >
> > If the market is turning bearish, as one of my subscriptions tells me, then
> > I'm considering buying TZA, which closed @ 6.30.
> > The May $6 put is only .033 and even the June is 0.59 so protection is
> > pretty cheap for this 3X contra, which makes for a very nice opportunity.
> > What am I missing?
> > Lou
> >
> >
> >
>
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