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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: saveslivesbyday who wrote (166974)11/25/2008 12:00:11 AM
From: lisalisalisaRead Replies (1) of 306849
 
I have thought about this quite a bit and I too only want to short the 2's ETF's. I would end up shorting the 2X ETF that goes in the opposite direction from the actual way I think the market may go.

Maybe the option prices will reflect this at some point, but it seems like almost a no lose strategy to short the 2X etf's using options with the longest time horizons. Even if you are 'wrong' it seems like you could end up being 'right'...and if you are right, you might end up being REALLY right..

Maybe I am missing something, it almost seems too easy. In fact I have not really employed the strategy except for a few days at a time because it seems like such a no brainer that it makes me worried I am overlooking something..seriously, usually when something seems to good to be true, its because I am overlooking some obvious point- so for this reason I have not employed this strategy much yet.

But I still can not figure out what I might be missing.
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