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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (123508)	8/21/2009 11:38:34 AM
From: Big Dog	Respond to of 206223

Makes sense. Thanks. big

To: Salt'n'Peppa who wrote (123508)	8/21/2009 2:35:24 PM
From: patron_anejo_por_favor	Respond to of 206223

>>ETFs have a time decay associated with them.<< For that reason (slippage) my preferred strategy on most of the double inverse sector funds is to short the calls of the long fund when I want to get short. It's volatile, but you take advantage of the inverse fund slippage, the time premium and the volatility premium all in one neat package. I sold some September DIG 27 calls today (for example). Again, NOT for the faint of heart and keep the positions small! If you buy and hold DUG, the fund sponsor will drink your milkshake!<NG>