Quote :

"If you're into swing trades, that's fine. When you enter a covered call, then sell your stock, you're essentially shorting the stock at whatever your short call is, so if the stock stays under your short call, then you're good. Just know your sentiment is identical to shorting the underlying stock if you do a CC then sell your stock in an effort to clean up on the stock gain and buying back the CC for cheaper than you sold it."

I know how it works, my online broker has different option levels, and I'm currently restricted to buy/sell calls and puts and selling covered calls. The minute I try to sell the underlying with an open short call position it restricts me saying something like "this would created an uncovered position and you aren't approved for that level"

4/22/2009 9:19:35 AM

off we go again?

out of FAS @ 8.11

only financial i have left is MS at a cost basis of 24.9



[Edited on April 22, 2009 at 10:35 AM. Reason : ]

4/22/2009 10:08:30 AM

yeah, kicking myself again...based on the decent earnings this morning I had a hunch the market was going to be up today and was going to take a 500 share or more load of FAS in the low 7 range.

Probably going to stay away from holding anything other than the SRS I already have with initial claims and existing home sales coming up tomorrow. I imagine we could still see another fake-good existing home sales number based on investors and speculators snapping up the early round of foreclosures and any sort of downtick in initial claims will be positive.

Somewhere, lurking in the back of my mind I can't shake the feeling that the worst really is behind us and everyone is pricing that in.

[Edited on April 22, 2009 at 11:47 AM. Reason : .]

4/22/2009 11:44:45 AM

Just bought some SRS...now I'm praying.

4/22/2009 1:36:24 PM

Don't get spooked about any strong moves between now and the close but I think it is going to be rocky into the end.

4/22/2009 2:50:25 PM

i love these Direxion ETFs - sold my long held QQQQs and will game the tech sector via TYH

my girl got a girlfriend chevy blue like whirlwind

4/22/2009 2:57:44 PM

reloaded on SRS @ 26.35.

4/22/2009 3:16:10 PM

and back out again at 28.45

4/22/2009 3:53:39 PM

I can't imagine holding SRS for more than a week due to the decay. It has gotten absolutely smoked from its peak even though commerical real estate is probably down a tad during that same timeframe.

I think i read the other day FAZ and FAS are both down about 75% since they begana. That's an intraday trade if I've ever seen one...

[Edited on April 22, 2009 at 5:27 PM. Reason : a]

4/22/2009 5:26:53 PM

The decay can work in both directions and all of the ultra/3x ETFs benefit from steady trending and get clobbered by hard/strong moves and whipsaw action.

Look at SRS YTD, at the peak on March 8, it was up 95% YTD while the index it tracks (IYR for a ticker) was down 40%. Didn't hear anyone complaining about that slippage.

The point being, if you keep the stops fine and manage to get in near the start of a longish run without a lot of whipsawing, you're going to come out like a hero.

4/22/2009 6:24:46 PM

All this SRS, FAS, and FAZ shit sounds more like gambling than investing

No thanks

Why not just buying option spreads. At least these are more transparent and take value directly depending on the volatility and price of the stock. These ETF's leave a lot of fudge room.

I have read articles where the QQQQ (which is not a 3x ETF just using as an example) which is supposed to follow a basket of growth and tech companies in the NASDAQ-100 ends up trending more closely to the S&P500; rather than the companies to which it is supposed to represent.

[Edited on April 22, 2009 at 6:42 PM. Reason : l]

4/22/2009 6:38:23 PM

no one is denying that it is gambling.

4/23/2009 7:23:43 AM

Im tempted to take some FAS here in premarket ahead of the Initial Claims, but I'm worried that last weeks slightly better than expected was noise in the data and this week will flip to slightly worse than expected and cause problems.

However, the Fed seems to be actively engaged in doctoring the numbers, so it's probably worth the gamble.

4/23/2009 8:23:28 AM

rofl, when the number came out, I fired an order for FAZ at 9.45, I thought it missed and I re-entered for 9.53. I canceled the 9.53 when it looked like the stock wasn't going much higher, and that either reactivated the 9.45 or it somehow got filled anyway. So I'm holding it at 9.45, not really wanting it and I end up letting it go for 9.42, only to see it trade up to 9.70 eventually.

dolt

4/23/2009 9:27:36 AM

MS trade not working out -- taking ~10%+ hit and bowing out

4/23/2009 11:10:19 AM

DNDN has some good news coming out,
april 27th and 28th should be real nice, $$$$$$

4/23/2009 12:20:04 PM

^ Damn you trade settlements, and damn you E-Trade for your 6-business day waits on deposits. Now i'm limited to only investing $300 into DNDN until after the 29th.

Anyone know of brokers without these ridiculous wait times?

[Edited on April 23, 2009 at 12:33 PM. Reason : .]

4/23/2009 12:33:24 PM

open a scottrade margin account, they are the best
once you open deposit money and you'll be trading DNDN in the same day, in one hour if you wish

and when you deposit money they will take it out of your account tomorrow

currently i have $4600 invested which is roughtly $3400 cash, $1000 margin


you can open an account today and trade today

[Edited on April 23, 2009 at 12:36 PM. Reason : .]

4/23/2009 12:35:13 PM

i am near tears, my dad sold a stock recently that i told him to get a year ago, now its gone from $7 to $25 on its way to $50 or $100 in two days

wampq, wamkq

4/23/2009 1:01:23 PM

i got in DNDN in my IRA @ 7.25 and monetized the initial investment above 16.

i then pick up some @ 20 in mine and my dad's trading accounts

4/23/2009 2:15:26 PM

Quote :

"i am near tears, my dad sold a stock recently that i told him to get a year ago, now its gone from $7 to $25 on its way to $50 or $100 in two days wampq, wamkq"

What makes you say that the stock will be at $50 or $100 in a few days? No one can tell for certain...

4/23/2009 3:48:15 PM

Looking at SRS since last november, it has bottomed out and then doubled in value three times. Hopefully it will happen again.

[Edited on April 23, 2009 at 4:14 PM. Reason : .]

4/23/2009 4:12:47 PM

my limit order on SRS didn't get filled

wah

4/23/2009 4:16:57 PM

Somebody explain SRS to me. I don't feel like googling.

4/23/2009 4:32:45 PM

SRS is basically FAZ just for real estate and not financials from what I understand

4/23/2009 5:05:11 PM

^pretty much. except SRS is 2X leveraged and FAZ/FAS are 3X leveraged.

all I can say is be careful with SRS and make sure you use stops. If you're patient and wait for careful "lows" to make your entry, you can make some good money. I'm about 3 for 6 with it right now, made 3 profits and got stopped out 3 times, but I'm still up about 18% overall because the times where I was "right" it went up enough to offset my bad trades and then some.

I really wouldn't recommend FAS or FAZ because they are so violent and the decay is terrible (a lot of people are actually shorting them to take advantage of the decay). UYG and SKF are the 2X version and I've had much more success with trading them, also using stops (very important).

[Edited on April 23, 2009 at 5:59 PM. Reason : /]

4/23/2009 5:58:19 PM

Quote :

"What makes you say that the stock will be at $50 or $100 in a few days? No one can tell for certain..."

if the company liquidates and there is enough money the liquidation value is $1000 per share of prefereds
but in the near term $100 or $50 is likely

4/24/2009 1:04:19 AM

also picked up a little bit of AXYS & NTG yesterday on recent purely on recommendations from the folks on Fast Money

4/24/2009 10:52:03 AM

obviously i sold BIDU too soon @ 175

...wondering if i should unload my long held SOHU now as well

4/24/2009 1:05:30 PM

bought 229 SSO @ 22.55

will be out shortly.

4/24/2009 3:09:13 PM

got out at 23.50

4/24/2009 4:26:52 PM

back in SKF at $55, RIFIN = 600 is a good entry IMHO

4/24/2009 9:24:39 PM

anybody in DNDN selling ahead of tomorrow's news?

i might sell a portion of it...

[Edited on April 27, 2009 at 2:03 PM. Reason : ]

4/27/2009 2:01:48 PM

Quote :

"got out at 23.50 "

fuck me

4/27/2009 2:11:39 PM

whats the problem?

4/27/2009 2:34:43 PM

shoulda sold at 26+ today :-)

4/27/2009 2:36:16 PM

SSO hit 26 today?

4/27/2009 4:05:32 PM

oh fuck i just realized i posted SSO up above, I meant SRS.

Weird. I haven't been in SSO for several months.

4/27/2009 4:18:18 PM

Whew. I thought that my trading program was embezzling from me.

4/27/2009 5:06:40 PM

I sold SRS at a loss last week. Fuck this ultrashort bullshit.

Bought some Nvidia for the long term.

4/27/2009 5:06:42 PM

getting the timing right on shorts for me is way too difficult, time consuming, and distracting from my day job.

on the other end, in this bear market rally/bottom creating action, i've made a nice little bit switching between long only and neutral positions. if i don't have time to watch, i don't go long. when i have time and i see a trend, i'll go long and rarely hold overnight if its ultralong or triple long.

4/27/2009 6:32:27 PM

It is very difficult when you're working full time.

4/27/2009 8:14:27 PM

^ultrashorts are making me some nice gains lately, you just need to set tight stop losses (no more than 3%)

4/13/2009 FAZ BOUGHT 210 SHARES OF FAZ AT $9.5698
4/15/2009 FAZ SOLD 210 SHARES OF FAZ AT $11.66

4/17/2009 SKF BOUGHT 41 SHARES OF SKF AT $58.6495
4/20/2009 SKF SOLD 41 SHARES OF SKF AT $68.65

4/24/2009 SKF BOUGHT 50 SHARES OF SKF AT $54.8895
*currently at $59.XX

4/27/2009 11:23:14 PM

tomorrow i dine with DNDN

4/28/2009 12:35:55 AM

More info from Zero Hedge on the REIT space and how it is being manipulated

http://zerohedge.blogspot.com/2009/04/is-there-reit-reverse-inquiry.html

If there really is an additional $30 billion in equity offerings to go, then it might be awhile before this squeeze is done, so in that light, keep nibbling at SRS but keep your stops tight. Eventually, you're going to grab a piece of it and wake up the next morning to see it up 30%, the downside risk is limited as the initial pops off the SPG upgrades is baked in.

4/28/2009 9:18:27 AM

DNDN looking good even before the announcement

4/28/2009 10:44:31 AM

Good thing I only managed to get $300 in to DNDN

4/28/2009 1:32:42 PM

Are stock prices supposed to gap down when they are halted?

4/28/2009 1:39:51 PM

wtf??

4/28/2009 1:42:22 PM

how long is this benchode halted for?

4/28/2009 2:24:11 PM