FAS = 1 for 5 / FAZ = 1 for 10

On friday night on fast money this guy said to short FAZ, how come every single person that sees these reverse splits occurring is expected to believe just because the stock price is going to go from $5.00 to $50.00 does it make it such a good idea to short once again to the single digits. The only way this drops to the single digits is if the banks continue to run upward for weeks and months at a time. What no one comprehends is that the only reason FAZ went from Triple digits to the low single digits is because of the huge, huge, huge bear market rally the banks experienced over the last 4-5 months. One of the biggest ever. The banks are now trading flat over the last few weeks, I believe many are waiting for earnings to make their move in financials.






TRADE AFTER DARK

Going into next week I’d short the FAZ [FAZ 5.13 0.42 (+8.92%) ], explains Jared Levy of Peak6; they’re about to complete a reverse stock split. However this isn’t a trade for retail investors. It’s highly levered and volatile. Only put this on your radar for day trading, he counsels.

 

People are so freakin stupid. faz and faz trade on underlying indexes and have nothing to do with there fundamentals. if bank stocks overall fall these rise no matter what there "technicals" say. so if this idiot thinks faz will fall he thinks bank stocks will rise

 

So, if you are smart enough to know this, why don't you exploit it. Answer: You are not a trader.

 

Nice ASSumption dickweed (thanks dennis). But i am a trader... and i do exploit it. With a black box and a paired algo strategy. And Zero overnight exposure...they way it should be.

I meant its a scam to mom and pop that don't know any better and think they are getting a true 3X levered product.

 

This is smart, I stopped trading these because each move was so small. It was great when they were above $40. And its not a scam. If you can't do math I suppose you may think its a scam.

 

I'm inclined to call it a scam. No matter what the markets do in the near term (next few months), these products (if not banned by regulators) will be in the single digits from the compounding decay and derivatives slippage. The options will price this in, and the brokers will call your short in at the worst time, so it's not quite "free money'.

 

If you go to the website and read you will understand that these 3x ETFS are not to be held long term, they are compounded on a daily basis, there is no SCAM involved in these Ultra ETFS. Stop talking about these etfs being scams and thinking they are going to get banned by "regulators".

You mention that "NO MATTER WHAT THE MARKETS DO these product will be in the single digits once again???

If thats the case and you believe it so, short FAS and FAZ. Seems everyone always talks about slippage and decay yet no one is shorting them down to the single digits.

 

Please read my posts before replying to them.

"There is no SCAM involved in these ultrashort ETFs."
Retard alert...

 

Jesus - will you look at FAZ get crushed. Financials are up like crazy!