SRS, shorts capitulating...

Why you guys still buy these 2x 3x leveraged fund? Just buy puts or short the market. You need to know how much you are paying for VIX.
 
Quote from piggie2000:

why not short the iyr? no erosion problems as thye're a bitch on these. my pt to you is instead of bottom fishing its much better to
roll into these as they're trending your way.the decay has take billions from both bulls and bears on these
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Fair point and the main reason is that I have found that SRS is easier to day trade than IYR, at least for me. My strategy is to try (obvioulsy it doesn't always work out) and day trade the instrument against my options position and bring down my cost basis along with doing things like selling some front month puts and calls spreads. I do add on trend pull backs once it changes but I like to try and catch some of the reversal if I can. Psychologically it allows me to put on a much bigger position than I otherwise might when it starts trending my way. I have thought about puts on the IYR (which you are correct offers the better yield on the trade) and trade the SRS against the position and maybe I will engage in a bit of that as I build the position.
 
You need to read the Prospectus on the SRS in order to have a better understanding of why it performs the way that it does... Historical price action is just as important as current price action.

My guess, is that 95% of the people that are trading this leveraged ETF have no idea what makes it tick.

Good Luck.
 
Called the Short from levels of 100 in December. I believe its at its low and at these levels you cover. The SRS may rise from here. Im expecting Real Estate to fall another 30% from here. Its not over. :cool:
 
There's no money in SRS. Buy IYR or URE. More bailout in the store. Ben Bernanke is going to print hundreds of billions more to prop up the CRE market.
 
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