mahkoh
1,065 posts
msg #102348
- Ignore mahkoh |
8/18/2011 4:14:09 PM
I'm wondering, why hedge financials long with a thinly traded short tech etf? Do you have a specific reason to choose TYP?
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alf44
2,025 posts
msg #102351
- Ignore alf44
modified |
8/18/2011 5:17:36 PM
TYP has an Average Daily Trading Volume of nearly 500,000 shares !
I don't consider that to be "thinly traded" ... AT ALL !
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mahkoh
1,065 posts
msg #102353
- Ignore mahkoh |
8/18/2011 6:14:16 PM
Maybe I should have added "relative to FAS's volume" , but still, why tech vs financials?
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alf44
2,025 posts
msg #102354
- Ignore alf44 |
8/18/2011 7:24:10 PM
... why tech vs financials?
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Why not ???
It works very nicely !!!
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alf44
2,025 posts
msg #102357
- Ignore alf44
modified |
8/18/2011 9:15:17 PM
Today for example :
FAS was DOWN over 14%
TYP was UP over 15%
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That's a pretty damn good "hedge" where I come from !!!
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In fact ... I actually made money on this god awful "shitstorm" of a day ... AND ...I slept well last night ...
...knowing that I was prepared for WHATEVER today's OPEN should bring !
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I'm not trying for some esoteric "Delta Neutral" trading situation here !
I'm ALSO not trying to be a hero here !
There is a time to MAKE money ... AND ... there is a time to NOT LOSE money !!!
Right here ... Right now ... I am in the "NOT LOSE" mindset !!!
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A Time Will Come To Make Money !
This is the "real world" !!!
HELLO !!!
Regards,
alf44
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mahkoh
1,065 posts
msg #102362
- Ignore mahkoh |
8/19/2011 7:21:06 AM
I'm not questioning your hedge, I was curious at the rationale. Wondering whether you had reasons to expect tech to underperform financials in the coming days/weeks.
Enjoying this thread by the way, it has made me more aware of the implications of tails when looking at charts.
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alf44
2,025 posts
msg #102386
- Ignore alf44
modified |
8/19/2011 3:50:44 PM
FYI ...
..... HOLDING remaining TYP SHORT exposure over the weekend !!!
..... ADDING some more FAS LONG exposure down here !!! (avg. $13.90)
...................................... EVEN MORE NET LONG NOW !!! ..........................
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mahkoh
1,065 posts
msg #102388
- Ignore mahkoh |
8/19/2011 4:16:04 PM
Admitted: Your hedge performed excellent today.
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four
5,087 posts
msg #102389
- Ignore four |
8/19/2011 7:35:16 PM
alf44,
Notice TYP and FAS are 3x ETFs.
Notice you work a net (hedged) positioning strategy.
Wonder...
What if you hedge the 3x position with a 2x position (REW / TYP or UYG / FAS)?
Allows a bigger bet on the side you are playing.
Any thoughts are appreciated. Thanks.
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alf44
2,025 posts
msg #102393
- Ignore alf44
modified |
8/21/2011 12:11:21 AM
four ... in theory ... it makes a ton of sense !!!
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Very clever ... and worthy ... of consideration !!!
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I will say this ... often ... "for me" it comes down to "price" !
In other words, DON'T OVERLOOK "PRICE LEVERAGE"' !!!
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Being able to BUY more shares (given your account size) ...
and available capital ... often times is the deciding factor for me !!!
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AGAIN ... as I said previously ... we are NOT necessarily trying to achieve perfection here !
"Delta Neutral" Is A Myth ... in the REAL WORLD !!!
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But ...I'm NOT HATIN' your suggestion !!!
.
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