NEW: Double weight spiders & Q's

[FaderTraderr]

Quote from Chagi:

Yup, they are indeed interesting products. The double beta inverse ones should be particularly cool.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=55054

At the risk of sounding like an idiot, I'll ask: What's the pt of an inverse product other than being able to have a hedged position within a single account? Don't you think that giving longs the option of not hitting out of the SPY when it's going down would lead to lower volatility?

 

[indahook]

They should have never split the Q`s in the first place......


Bizzare trading ranges. For exp. yesterday SPY true range was 1.28 and SSO was 1.56...QQQQ .91 and QLQ 3.08. No double whammy for the SPX deriv and Triple for NDX deriv...

 

[MTE]

Quote from FaderTraderr:

At the risk of sounding like an idiot, I'll ask: What's the pt of an inverse product other than being able to have a hedged position within a single account? Don't you think that giving longs the option of not hitting out of the SPY when it's going down would lead to lower volatility?

I think the main point of this product is the ability to short the market without the need to short sell the ETF.

 

[FaderTraderr]

Quote from MTE:

I think the main point of this product is the ability to short the market without the need to short sell the ETF.

Got that, but if longs can just hedge out the downside without hitting out and shorts can just buy the inverse product, wouldn't that lead to less movement in the SPY and, hence, the inverse product itself (assuming they move together)?

Perhaps I'm viewing this naively, but I like it when shorts start hitting bids, push the instrument down, and then the longs get shaken out.... creating a tradeable downtrend.

 

[indahook]

Quote from rtstrading:


and Short DJI - DOG

Best ticker ever...

also will these inverse products pay interest such as being short does???

 

[JimmyJam]

Quote from FaderTraderr:

Got that, but if longs can just hedge out the downside without hitting out and shorts can just buy the inverse product, wouldn't that lead to less movement in the SPY and, hence, the inverse product itself (assuming they move together)?

These things are products, they aren't going to affect the trend of anything, they're just more products ... salesmen need them ... to sell products to customers ... so they can make money.

 

[Chagi]

Quote from MTE:

I think the main point of this product is the ability to short the market without the need to short sell the ETF.

Yes, and that in turn means that these products can be held in a retirement account.

 

[nlslax]

Quote from rtstrading:

The Short QQQ - PSQ
and Short S&P - SH
and Short DJI - DOG

appear to be a way to be short the market in an IRA account!
No double shorts just the Ultra longs are double: QLD & SSO

Almost like using margin in an IRA account too...:eek:

 

[Rearden Metal]

Quote from trendmomentum:

Do you think you're gonna get a volume spike from the credit card traders-wannabe lurking around here on what is basically an institutional hedging product? LOL

...yes, I do!

<img src=http://stockcharts.com/c-sc/sc?s=SSO&p=D&b=5&g=0&i=t43632950383&r=4963>

 

[Rearden Metal]

Quote from eusdaiki:

are they traded on AMEX or NYSE?

Technically- AMEX.
Realistically- use ARCA or ISLD.