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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: yu who wrote (37915)7/14/2002 2:18:20 PM
From: chris714  Respond to of 52237
 
very interesting...I hadn't even thought of that

Sometimes I speak(or trade) before I think.

Thanks for bringing me back to reality

I guess the implication here is that Rydex,Profunds etc....will be using options to enable their 2x strategy.

Thus time decay can still enter the picture.

All in all though, I would guess that time decay would not be near as bad in a 2x fund......compared to me just purchasing index options
My guess would be that they are using more financial instruments to diversify....and that they probably hedge the time decay in some manner
All of which is beyond my current skill level.

If anyone else has thought about the varying degrees of time decay....Regarding Rydex or ProFunds vs. individually buying index options
I would enjoy hearing from you

Thanks yu

Chris