June 13th, 2013

Another Opportunity In A Market Correction

AlphaCheck 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

  1. “timing is everything,”
  2. highly leveraged transactions cut both ways and
  3. this is the antithesis of a buy-and-hold investment strategy.

 

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