QID?

anf123 · Oct 23, 2007

Hello everyone. First post. I'm a casual market observer who puts some money into the markets every now and then.

I noticed today that the Proshares Ultrashort QQQ has reached a 52 week low, and with as much concern in the markets as there currently is, was considering buying some. I know AMZN is up to report after the bell today, but it just seems that tech is so overbought right now, and any sort of bad news from AMZN could spark a sell off tomorrow.

I don't have a margin account (college student, bit too risky at this time, although I would like to change to it instead of just trading cash) so I can't short AMZN or any other stock.

I think it could be a decent buy.

Thoughts?

gobar · Oct 23, 2007

Quote from anf123:

Hello everyone. First post. I'm a casual market observer who puts some money into the markets every now and then.

I noticed today that the Proshares Ultrashort QQQ has reached a 52 week low, and with as much concern in the markets as there currently is, was considering buying some. I know AMZN is up to report after the bell today, but it just seems that tech is so overbought right now, and any sort of bad news from AMZN could spark a sell off tomorrow.

I don't have a margin account (college student, bit too risky at this time, although I would like to change to it instead of just trading cash) so I can't short AMZN or any other stock.

I think it could be a decent buy.

Thoughts?

another earning coming from EMC and VMW and the big one yet to come

CSCO

S2007S · Oct 23, 2007

hold up on qid, market is irrational....

99atlantic · Oct 23, 2007

How does QID pay out a dividend? I never bothered to look at the fundamentals behind it, but if it's ultrashort, how does it pay a dividend?

S2007S · Oct 24, 2007

Quote from 99atlantic:

How does QID pay out a dividend? I never bothered to look at the fundamentals behind it, but if it's ultrashort, how does it pay a dividend?

nearly every single proshare etf has paid out a dividend, last quarter the only proshare to not pay out a dividend was QLD. Go to proshares.com and click on distributions, it shows every dividend payout for 2007. Some are impressive.

99atlantic · Oct 25, 2007

Quote from S2007S:

nearly every single proshare etf has paid out a dividend, last quarter the only proshare to not pay out a dividend was QLD. Go to proshares.com and click on distributions, it shows every dividend payout for 2007. Some are impressive.

Right, but that doesn't asnwer the question - if a fund is ultra-short, how can it possibly pay out a dividend if it's short?

moo · Oct 25, 2007

Quote from anf123:

I noticed today that the Proshares Ultrashort QQQ has reached a 52 week low...

One piece of advice: NEVER BUY ANYTHING AT A NEW LOW.

Try SDS or TWM instead, more potential & less risk.

makloda · Oct 25, 2007

Quote from 99atlantic:
Right, but that doesn't asnwer the question - if a fund is ultra-short, how can it possibly pay out a dividend if it's short?

Short positions generate interest income. That's probably what they distribute (minus any expense fees they charge).