Sold BGZ @ 18.95 +$0.98
Bot BGU @ 48.27 +$9.63
Sold DXD @ 30.55 +$0.51
Bot DDM @ 42.65 +$0.75
Bot DIA @ 102.90 -$0.27
Posts
The Illusion of Choice
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What happens doesn't matter nearly as much as what you make it mean ... and
what you choose to do. For example, Dallas has been 100+ degrees almost all
sum...
4 comments:
Well done, DC! and thanks for the distribution on BGU :P .
You can see the irrationality of these derivatives by comparing the relative return of shorting the bullish ETF while simultaineously buying the bearish ETF. Obviously the bullish ETF was extremely overpriced in comparison to the bearish ETF. A lot of brokers are getting calls from compliance officers if these ETF's are in customer accounts and I believe there are certain risk disclosures that have to be given to customers. Also, beware the year end x-dividend date because of the capital gain distribution necesitated buy tax laws governing futures contracts at year end. Curiouser and curiouser! Just another zero sum game.
I believe the discrepancy is more just a outcome of compounding. If you set up an underlying with leveraged bear and bull funds based on it on an excel spreadsheet, and play with the numbers, you can see how it works.
Well, you did exactly as I didn't last week-- you took profits and ran. Congrats!
George,
You answered it well. I paid for your dividend! And you are most welcome. My capital could not have gone to a nicer guy. I was short on 11/20/09 that is the x-dividend date. Because the price of the stock is essentially reduced by the amount of the dividend and I bought it back on the x-dividend date, I am responsible for the dividend. My account was debited the $6.50 per share that your account was credited.
DC
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