Lets figure this out together. Volume in FAZ (and FAS for that matter)

Discussion in 'Trading' started by Nofear777, Apr 21, 2009.

  1. The float on faz is 48 million shares. Faz has traded 340 million shares today.

    The volume in FAZ is over 6x the float. How is this possible?

    And how, we as traders, take advantage of this?
  2. 1) The issues are each being over-traded outright.
    2) There's "excessive" pairs-trading between the two.
    3) There's "excessive" options-related trading and hedging in the issues.
    4) There's "excessive" spread-trading between those two issues against other correlated ETF's.
    5) If you constantly bid and offer the issues, you may be able to scoop up a lot of "free money". :cool: