Discussion in 'Order Execution' started by MustPlayOptions, Jul 12, 2006.
Thanks in advance,
Sure it is...
I'm asking because I noticed QQQQ and the ^IXIC tend to cross each other a lot in the last couple of years, although they diverged 5 years ago and never crossed.
I was wondering if there was a way to play the divergence?
The only NASDAQ futures I found were the Mini Nasdaq 100's and I don't think that would work.
In IRA account either use PSQ or bear funds.
Thanks - I didn't know that existed. An article about PSQ also mentions SH which is short the S&P 500 as well.
I'm curious why you suggested in an IRA though? Do you mean just for trading purposes to avoid the short term gain/loss or is there another reason?
Is PSQ shortable too? Do you know if it's short the entire Nasdaq or short the Nasda 100?
I am currently in Direxion Funds Nasdaq 100 Bear 2.5x since May 15th....It's been a great place to be, but I'm not sure when this slide will end and how much room is left in this correction......I'm still long defensive equities and have a large percentage of the portfolio in this fund and some other Direxion short funds...
The 2.5x means you are taking a 2.5:1 ratio of the move.....It was up 5.24% today on a day when the QQQQ was down 1.89%....not really sure how that works, but they short the QQQQ and use a put option strategy and maybe futures.....Not all that familiar with it, but I know it's a leveraged short fund on the Nasdaq 100....
I find this to give me the best return and expenses are low.....This may be what you are looking for.....
You can locate this @ http://www.direxionfunds.com/direxion.html
go to PRODUCT GUIDE
Another interesting fund - thank you.
One problem with those funds though is that if you trade a mutual fund too often they start to charge commissions - although I'm not sure if that includes position adjustments or not.
I'm trying to think through some strategy that may involve long/short/option positions with negatively correlated positions and the key would be to have the positions be exactly negatively correlated over the long term and for some strategies maybe over the short term as well.
If the funds don't charge for multiple position size adjustments, then you might be able to just hold the opposited funds and adjust the sizes as needed - otherwise it might be better to go with the etf's. I'll have to ask my broker how that works.
So far everyone's posts have been very helpful - thank you
Not only is it shortable, but it requires NO uptick.
Present 20 day ATR for stops and position sizing is 68 cents, up from 65 cents June 20th.
You can only write covered calls (or buy bear funds) in an IRA.
are the qqqq's shortable?
is a fat ass soft?
the answer is 'yes'.