Comments on: “How To Make 500% From Oil’s Violent Rally” http://www.stockgumshoe.com/2009/05/how-to-make-500-from-oils-violent-rally.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Sat, 21 Nov 2009 05:52:09 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Jay Cornelius http://www.stockgumshoe.com/2009/05/how-to-make-500-from-oils-violent-rally.html/comment-page-1#comment-9301 Jay Cornelius Sun, 31 May 2009 13:24:44 +0000 http://www.stockgumshoe.com/?p=1513#comment-9301 re: "shorting the opposite ETF of the one you like?…for example pick any two opposites, take FAS and FAZ. If you like FAS and wanted to invest in it, why not short FAZ instead" This is a good idea in theory, especially since these ETFs have an expense ratio cost that helps to benefit your short position. HOWEVER - my broker never seems to make ANY ultra ETF available for shorting. Anything that is double-long, double-short, triple-long or triple-short always shows as "Zero Shares Available" for shorting. Is any one of you having success at finding shares of these to short? re: “shorting the opposite ETF of the one you like?…for example pick any two opposites, take FAS and FAZ. If you like FAS and wanted to invest in it, why not short FAZ instead”

This is a good idea in theory, especially since these ETFs have an expense ratio cost that helps to benefit your short position. HOWEVER – my broker never seems to make ANY ultra ETF available for shorting. Anything that is double-long, double-short, triple-long or triple-short always shows as “Zero Shares Available” for shorting. Is any one of you having success at finding shares of these to short?

]]> By: Glenn http://www.stockgumshoe.com/2009/05/how-to-make-500-from-oils-violent-rally.html/comment-page-1#comment-9240 Glenn Thu, 28 May 2009 04:07:03 +0000 http://www.stockgumshoe.com/?p=1513#comment-9240 To be talking about decay you must be talking options. To have time decay on your side you have to sell options. Which is limited upside and perhaps unlimited losses. unless you do it with CFDs but aren't they illegal in the USA? Or have I missed the point? To be talking about decay you must be talking options. To have time decay on your side you have to sell options. Which is limited upside and perhaps unlimited losses. unless you do it with CFDs but aren’t they illegal in the USA?
Or have I missed the point?

]]> By: Mark Bohana http://www.stockgumshoe.com/2009/05/how-to-make-500-from-oils-violent-rally.html/comment-page-1#comment-9237 Mark Bohana Wed, 27 May 2009 23:58:21 +0000 http://www.stockgumshoe.com/?p=1513#comment-9237 As an FYI, if you plan to trade or hold USO, than look at a tax deferred account (IRA, Roth, etc.) instead of regular brokerage account. USO is a limited partnership, consequently you will get a K1 and need to establish basis for schedule D. To those of us that are used to doing ltd partnerships, it isn't a big deal but for those non initiated or going to tax service, the expenses and time could be a problem. As an FYI, if you plan to trade or hold USO, than look at a tax deferred account (IRA, Roth, etc.) instead of regular brokerage account. USO is a limited partnership, consequently you will get a K1 and need to establish basis for schedule D. To those of us that are used to doing ltd partnerships, it isn’t a big deal but for those non initiated or going to tax service, the expenses and time could be a problem.

]]> By: Simon http://www.stockgumshoe.com/2009/05/how-to-make-500-from-oils-violent-rally.html/comment-page-1#comment-9234 Simon Wed, 27 May 2009 19:35:06 +0000 http://www.stockgumshoe.com/?p=1513#comment-9234 I think what i'd probably do is take a percentage of what i'd invest and buy the Jan 2010 expiry $10 call (it's trading for $2.93 a contract) and keep the rest on the sidelines in cash so the amount i have invested IS my stop. ie if i would normally put $10,000 into a position then i might buy $1500 or $2000 worth of contracts. That way if their wrong... the most i can lose is my $1500 (no worries if the ETF gaps down), but I have an unlimited upside for the next 8 months if oil goes ballistic. just an idea! :) I think what i’d probably do is take a percentage of what i’d invest and buy the Jan 2010 expiry $10 call (it’s trading for $2.93 a contract) and keep the rest on the sidelines in cash so the amount i have invested IS my stop. ie if i would normally put $10,000 into a position then i might buy $1500 or $2000 worth of contracts. That way if their wrong… the most i can lose is my $1500 (no worries if the ETF gaps down), but I have an unlimited upside for the next 8 months if oil goes ballistic. just an idea! :)

]]> By: StockGumshoe http://www.stockgumshoe.com/2009/05/how-to-make-500-from-oils-violent-rally.html/comment-page-1#comment-9233 StockGumshoe Wed, 27 May 2009 19:18:14 +0000 http://www.stockgumshoe.com/?p=1513#comment-9233 Fun stuff, eh? He's not the first to lay claim to "top secret" ETFs -- back in September Martin Weiss was taking ownership of all of ProShares short products, saying he had a "comprehensive list" of these special products for his subscribers. Of course, at the time ProShares was offering ... you guessed it, exactly 38 inverse ETFs -- and certainly not trying to keep any of them secret. http://www.stockgumshoe.com/2008/09/inverse-etf-riches-for-2008-2009.html Fun stuff, eh? He’s not the first to lay claim to “top secret” ETFs — back in September Martin Weiss was taking ownership of all of ProShares short products, saying he had a “comprehensive list” of these special products for his subscribers. Of course, at the time ProShares was offering … you guessed it, exactly 38 inverse ETFs — and certainly not trying to keep any of them secret.

http://www.stockgumshoe.com/2008/09/inverse-etf-riches-for-2008-2009.html

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