"it looks like they are not exact...but i dont think the QQQQ is exactly the same as the $COMPX if you were to do a chart overlay. little divergences here and there." The QQQQ is the Nasdaq 100 index comprised of 100 Tech stocks. The $compx is 3000 stocks including Non tech issues that trade on Nasdaq. They are not 100% correlated.
I'm enjoying the ride, but I still don't have a good cusion below me on the QID to get out of my hedge....The Nasdaq 100 just has to go up 1.25% and I break even, So today I bought 2000 Aug 37 calls at .525 (average price) (Cost $105,000.00).....Net $83,000 on the QID position so far and -$5,000 on the hedge....In case we have another one of those 20+ points on the S&P kind of day....It's by no means a perfect hedge, but it was timed pretty good so far and I get a little vega position as well.... I had a good amount of help today from the heavy wieghts..The 10 Largest Market Caps...MSFT, GOOG, CSCO, INTC, AMGN, ORCL, QCOM, AAPL.......These 8 were in the RED Only these 2 were in the Green....CMCSA(#7), ERICY(#10) I recently got out of my DXQSX fund which shorts the QQQQ at 2.5%, but the QID will have to do.....It grossed over 2 MM in less than 2 Months... A Tech Rally could be painful!!!!! Wish me luck.... $COSTAverageMAN
$COSTAverageMAN -- your position in QID is quite large. Is it your intention or have you thought about arbitraging the NAV vs. market price? July 27 close UltraShort QQQ QID NAV $75.26 Market $75.40 Theoretically one could purchase creation units at $75.26 and then sell at market at $75.40. But I have no clue if this can realistically done in practice.
The bid/ask spread is very large on these. Is there any way to calculate how they are valued intraday compared to QQQQ? I see the NAV vs market posting but where did that value come from?
the spread wont stay wide for long if these things get any volume b/c market makers wills start to arb them against futs, opts, other etfs, and baskets. Then they might be interesting to trade. Right now there's a little too much spread and slip for my tastes.