Monday, February 4, 2013

Correction...XIV

Correction, I will close my TZA position here shortly and will be opening a 50% long position in XIV...not TNA. 

Thanks "Brad" for notifying me quickly of my oversight.
J

13 comments:

  1. By the way, as per our chat the other day about the bleed on TZA, here's a comparison over the past 7 days, where the RUT dropped just a tiny bit...so, any decay is bleed, mostly.
    24-Jan-13 4-Feb-13 Product Change
    900.19 899.28 RUT -0.10%
    75.682 75.636 TNA -0.06%
    11.26 11.21 TZA -0.44%

    The RUT moved in the favor of the direction of the TZA... but rather than being up 0.3% (3x RUT), it's negative nearly a half percent... in just 7 days. So, if you were betting down the past 7 days, yer definitely better off having shorted TNA (which would have you UP 0.06%) than longing TZA (which would have you down -0.44%, though the mkt moved a smidge in your favor.. 0.44% bleed over just 7 days... that's a tough head-wind to buck. And 7 days is not exactly a long hold.

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    1. Yes, thank you. There are (rare) environments in which TZA will outperform over a 7 day stretch, but the recent chop is evidently not one of them.

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  2. Yes, thanks. It certainly does seem that shorting TNA and TZA for short and long positions respectively is a wise strategy.

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  3. XIV looks to have a very nice day if these futures hold!

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    1. Indeed. Seems like a gift...almost makes you want to cash out some on the open.

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  4. Just purchased a large lot of SPXU on the SPY gap fill. Non-system trade... Just a hunch. Will be back prior to the close with the offical signal and my game plan. thx.

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    1. Say more, JT. As a reversal of the position? An equal value to essentially lock in the gains of the long? Or just a small "large lot" to act as partial hedge. I'm also seeing some intraday internal weakness here, but I'm mainly curious about the trade mgt aspect.

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    2. Equal size to XIV, capital wise. Alternatively I could've sold XIV and gone to cash, but feel XIV still has some upside potential as it's not nearly as close to filling its gap.

      So, all my capital is invested.

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    3. thx, JT. Kind of a "pairs trade" then.

      :)

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    4. Sounded good in theory, can't believe the market strength today!

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    5. Maybe enen enough to flip the system, causing a short signal @ COB??

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