next big money is going to be made

Discussion in 'Options' started by mikeenday, Aug 8, 2011.

  1. mikeenday

    mikeenday Guest

    in the puts of thse 3X bear ETFs.

    expecting to see FAZ/TZA go down 60% in the following days/weeks.


    Holding FAZ OTM puts at various strike
     
  2. Why not just buy FAS or TNA ? and sell OTM weeklys ? You get great decay ~

    Volatility is so high I think it's not worth it to try buying those options cause they are so expensive.


    I know you have a good track record, so how far out and what strikes are you looking at ?
     
  3. mikeenday

    mikeenday Guest

    "Why not just buy FAS or TNA ?"
    because they reset every day, and mathematically don't make sense to hold them long if your entry is not perfect.

    The strikes price is usually 50% trace of a big bounce for me.