Shorting Leveraged ETFs

[Hester]

Quote from jones247:

It's terrible that they can be called in at any time. What's the benefit of shorting if you won't be given the opportunity to increase or hold your short positions through the drawdown? Is there anything that can be done to prevent them from being called at anytime?

thanks,

Walt

LEAP put spreads

 

[bwolinsky]

Quote from jones247:



My main interest is something akin to shortable pairs trading of leveraged etfs. I've searched several threads in an attempt to find discussions on statistical arbitrage opportunities with this strategy, or a similar strategy. However, I've yet to find any such information. Would you mind directing me to the thread with such information?

Hi, have a look at BWolinsky Trading http://www.elitetrader.com/vb/showthread.php?s=&threadid=167686

Then look at wealth-lab.com and wl4.wealth-lab.com. They have shell programs to build pairs models from. And they do work if you know how to modify them.

BTW, the models on there, assuming you know how to optimize and modify such strategies, work on any highly correlated pair you can find.

 

[jones247]

Good point... I was considering this instead of the synthetic positions, because the short calls on the synthetics can be exercised if a temporary spike occurred.

Any european style leveraged etf options with strong liquidity???

Quote from Hester:

LEAP put spreads