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@yahoo.com > 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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