June 13th, 2013
Check out my latest article “Another Opportunity In A Market Correction” in SeekingAlpha.com. In it I explained how I combine call options on SDS (the ETF that shorts at 2x the change in the S&P 500 Index) for a very short-term speculative play on a market correction. As I say in the article,
This is not a trade for everyone. Should you decide to try your hand “hedging” or taking a short-term bet that the market will correct in this or a similar tactic then it should be for a very small percentage of your capital. For it to be successful, you need to remember that
- “timing is everything,”
- highly leveraged transactions cut both ways and
- this is the antithesis of a buy-and-hold investment strategy.