tag:blogger.com,1999:blog-30643134.post2274158772476176186..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Corporates: I'll never turn to the wide side!Accrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-30643134.post-38046082020038568732009-05-12T21:57:00.000-05:002009-05-12T21:57:00.000-05:00I know a lot of people that trade leveraged ETF's ...I know a lot of people that trade leveraged ETF's including adam warner over at adams options and I'd just assume short the /ES, but to each his own. I mean im the guy that buys TBT as opposed to shorting bond futures lol. so some people would say take a look in the mirror.GS751https://www.blogger.com/profile/12104712741442133837noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-19384305557608005312009-05-12T13:35:00.000-05:002009-05-12T13:35:00.000-05:00It's not that it's foolish. It's that it doesn't ...It's not that it's foolish. It's that it doesn't necessarily do what you think it will do. Every day they have to rebalance for most of these. You have gamma at the end of the day. Remember, anyone buying on T+x is getting the return from T+x-1. So as the market oscillates you will have behavior that doesn't parallel the market moves.<br /><br />eg: If the market is up 20% over the last 10 days, but there was oscillation (which there always is) then your return could be -5% or +25%. <br /><br />Futures will track properly. IMHO, these are only for a punt during the day.JoshKhttps://www.blogger.com/profile/17028441526311718240noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-82784513392342813472009-05-12T11:15:00.000-05:002009-05-12T11:15:00.000-05:00Josh:
You just have to rebalance if its a hedge. ...Josh:<br /><br />You just have to rebalance if its a hedge. It isn't foolish to take it overnight.<br /><br />Burak:<br /><br />There is a natural decline to these things, even after forgetting the cost in the futures market. It has to do with the mathematics of multiplication and time linking. I'll post the math.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-20208867578587950892009-05-12T10:24:00.000-05:002009-05-12T10:24:00.000-05:00please excuse my ignorance but why not go long SDS...please excuse my ignorance but why not go long SDS? tracking? cost or what? <br />And I don't think accrued would hold that position overnight nor would buy something he doesn't know.Burak Thttps://www.blogger.com/profile/04398510763175116109noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-89374708105278525642009-05-11T21:31:00.000-05:002009-05-11T21:31:00.000-05:00Short SSO? May the decay be with you!Short SSO? May the decay be with you!1https://www.blogger.com/profile/07873350421866525173noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-91797848911100443802009-05-11T19:37:00.000-05:002009-05-11T19:37:00.000-05:00This comment has been removed by the author.Jakedeezhttps://www.blogger.com/profile/07435828557670647528noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-24615821065591352292009-05-11T18:26:00.000-05:002009-05-11T18:26:00.000-05:00Just sell the futures, these ETFs aren't so good f...Just sell the futures, these ETFs aren't so good for overnight positions. You're not making the trade you think.JoshKhttps://www.blogger.com/profile/17028441526311718240noreply@blogger.com