The Speculative Stocks....

[fenders53]

(03-24-2020, 11:24 AM)Otter Wrote:

(03-24-2020, 11:08 AM)fenders53 Wrote:

(03-24-2020, 10:52 AM)stockguru Wrote:

(03-20-2020, 03:01 PM)Otter Wrote: So, on a day when SPY finished down 4.3% on above-average volume, SVXY was up 1.5%. That IV Crush is no joke, LOL.

What about buying SDS?? I was thinking of getting this one today. If the market is headed down another 3-4 weeks this one would be good to be in.  Maybe a good time to buy today with the market green lol

Maybe you already know this but it's 2X leveraged and  they are using options, so there is time value decay.  You need the market to move down significantly and soon.  If you try to hold it a month and the market goes sideways or loses volatility, you won't be even.  Pull up a ten year chart and you'll get the picture.  Most leveraged ETFs eventually go to zero and are liquidated. All that said the market is highly likely to dip in the next few weeks so now would be the time to try it.

100% true. This is all predicated on some big SPY drops happening in the next few weeks, substantially below current levels.

That said, I believe that to be a likely scenario. This is, of course, a high-risk trade (hence discussion in this thread).

That was for guru.  I know you understand the effect of time and volatility on options.