SDS vs ES

[FGBS]

A bit boggled never really looked at the short proshares before. Today SDS is down 5.85% from 73.xx to 69.xx and the ES went from 1188 to 1191.5.

Can someone explain to me how this is possible? Is the a daily nav adjustment or something of that nature?

Cheers for any hints

 

[ElCubano]

I have no idea...its definitely out of sync...just bought some

 

[startraitor]

Just a guess, ex date, div and capital gains? That is what usually causes adjustments in nav.

 

[FGBS]

I bought some premarket as i couldn't find any news on div, etc on website but just got out as this seems to be the right price, everyone is trading here with no real force up or down just follwing es movement -2:1

 

[Nofear777]

Nobody knows. These etfs are broken, and ripoffs...

Just think, if you got long sds last night (which I was but covered after the GS news), you see the futures and you're not worried..

The only option is to open a futures account and trade on that...which is my plan..

 

[startraitor]

UltraShort S&P500 SDS (DIV)-0.21451 (CAP GAIN)-3.82635 N/A 9/24/2008 9/26/2008 9/30/2008

 

[dero]

this answers it:

http://www.proshares.com/funds/distributions

 

[FGBS]

Quote from startraitor:

UltraShort S&P500 SDS (DIV)-0.21451 (CAP GAIN)-3.82635 N/A 9/24/2008 9/26/2008 9/30/2008

Thank you.
It felt to good to be true.
Any idea how often they pay out?

 

[FGBS]

Quote from dero:

this answers it:

http://www.proshares.com/funds/distributions

And the muppet of the day award goes to...
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FGBS

 

[Sonny]

If you were short SDS your account will be debited for the dividend but what about the capitals gains distribution? I shorted SDS last night and placed an order to cover at 71.35 which was filled shortly after 7:00 this morning. Now I am most likely going to be responsible for the capital gains distribution so that order may come back to haunt me.