*No Risk* - Simply Short UNG, VXX, SDS and every other Constantly Decaying ETF

Discussion in 'ETFs' started by thesniper, Mar 26, 2012.

  1. Sig

    Sig

    Maybe he heard someone say "spark spread" once and just mangled it in the retelling? That's a thing in NG/electricity, just doesn't have anything to do with the conversation at hand.
     
    #21     Nov 2, 2017
  2. Maverick74

    Maverick74

    Yeah, I know what a spark spread is. It just has nothing to do with contango and sure as hell has nothing to do with the VIX. LOL.
     
    #22     Nov 2, 2017
  3. Some are very easy to short
     
    #23     Feb 15, 2018
  4. Saltynuts

    Saltynuts

    LOL at these being no risk. That is NUTS. There is HUGE risk - shorting long volatility funds can go against you hugely when volatility whips up, as seen very recently. And you could easily be stopped out if you have more than a very small position in your portfolio. I'm talking going up like several hundred percent (and thus your account down several hundred percent) in the course of a few days.
     
    #24     Feb 15, 2018
  5. People had pointed this out and what you said doesnt apply to ung kind of etf.
     
    #25     Feb 15, 2018
  6. Saltynuts, you need to rein yourself in. You don't need to start and/or comment on every volatility thread.
     
    #26     Feb 15, 2018
  7. Saltynuts

    Saltynuts


    LOL shut your face you troll.
     
    #27     Feb 16, 2018
  8. Zing! Show me exactly one instance of me ever trolling on this website and I'll leave for a week. Just one.
     
    #28     Feb 16, 2018
  9. Any update?
     
    #29     Feb 24, 2018
  10. JSOP

    JSOP

    Because they don't ALWAYS decay towards zero. They DO rise when volatility in the market rises just like what we saw on Feb. 5 of 2018 and trust me, that won't be the only and last time we see this. MORE are coming. Consider yourself warned. And many traders, during the most recent market correction, had their accounts wiped out clean in ONE day, erasing ALL of the profits that they have made from "doubling money almost every year". So trading in those ETF/ETN's is not as easy as "just short them". They decay over time but when they do rise occasionally, they rise BIG!! The problem is you just never know WHEN they are going to rise.

    Because these ETF/ETN's are there for a different purpose, NOT for "buy and hold" investing. They are not as risky provided you know how to manage its risk properly. And yes there are hedge funds that trade them.
     
    Last edited: Feb 24, 2018
    #30     Feb 24, 2018