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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: microhoogle! who wrote (248570)	5/18/2010 10:50:11 AM
From: ChanceIs	Read Replies (2) \| Respond to of 306849

>>>TBT being a ultra short loses value over a period of time even if underlying instrument remains the same<<< Quite true. Consider shorting some lightly $4-$5 in the money puts/LEAPS against it. Maybe half your intended position in the shorted LEAPS and the other half directly long. Can sell some covering calls against them if you want to dampen the underlying time decay a bit. I shorted a few May $41 puts against TBT on Monday. I will wait to see what this Friday (expiry) brings before moving again or getting longer (shorter Treasuries). You have to figure on a technical bounce here.