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Strategies & Market Trends : Aardvark Adventures -- Ignore unavailable to you. Want to Upgrade?

To: ~digs who wrote (5972)	12/27/2008 12:44:42 PM
From: rrufff	Read Replies (2) \| Respond to of 7944

I haven't followed DTO, have you been tracking it? The doubles and the inverse ETF's are notorious for underperforming over time so shorting them may be a good strategy, given the way the math plays out. I'm not sure if ETN's play out the same way, but as they have to balance the leverage daily, they probably play the same inefficient pattern. I've been writing puts and calls on some of the more volatile such as FXP. With oil, I've played USO, which is pretty much straight crude. DIG and DUG are various big oil that have good volume. Shorting DTO could be a home run type play if you call the turn right. Is there enough volume to play options on it? Do they have options? I've found that as you have to call these leveraged plays almost perfect, the only consistent profits for me have been writing the options. I haven't had a losing month in FXP, which is unbelievably volatile even though I've been only "so-so" in calling the exact moves. The premiums are so large that they make up for my mistakes. I'm not playing it this month, but starting to think that oil should bottom here so I'm thinking USO long, maybe with a covered call, although your DTO short intrigues me now.