Hedging With SDS, SKF, and SRS

November 17, 2008 – 2:43 pm

With 15% of my cash position, I bought [[SDS]] @ 99.04, [[SKF]] @ 172.74 and [[SRS]] @167.10.

Taking into account how many asshats keep talking about a rally, my guess is that one won’t materialize. Sorry. The rally may be cancelled.

I’m not taking anymore stupid chances, ergo the hedges.

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9 Responses to “Hedging With SDS, SKF, and SRS”

anjing bau Says:

markets have been range bound since start of October…buying the dips and selling the rips is what has worked most profitably…. XLF is going to put in a new closing low today…needs to get back inside 12.47 tomorrow…the good news is that volume isnt increasing on this move….
November 17th, 2008 at 3:02 pm
Keith Says:

Alpha,

I own SCC, SRS and SZK as my hedges.
November 17th, 2008 at 3:28 pm
alphadawgg Says:

AB–
These trades are a start to get some hedges back on. I lifted them last week in anticipation of a rally.

Keith–
I thought about SCC and SZK, but B/A spread is too rich for me. Not enough daily volume.
November 17th, 2008 at 3:39 pm
GW Says:

Usually when you buy these vehicles after they have run I think wow that is brave, especially knowing how they whip around…but then I have a moment of clarity and save that is brave and righteous…I’m just a pussy *(as Fly would put it) in cash for now…
November 17th, 2008 at 10:48 pm
alphadawgg Says:

Am I the only one socking away coin here on SDS, SKF and SRS?

Ready to lift the hedges (because I can) if need be, however.
November 18th, 2008 at 1:43 pm
anjing bau Says:

tough market for bulls and bears… intraday trades are all that seem to be working consistently here….

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markets bottom when the news is terrible when nobody wants to own a stock and when hope for a turnaround has been abandoned…. are we there yet?
November 18th, 2008 at 2:21 pm
alphadawgg Says:

Not there yet. Check back in 2009 sometime. This could be upwards of a two year duration from the ‘07 peak to trough.
November 18th, 2008 at 2:36 pm
big daddy elk Says:

Thx A Dawg I appreciate your forthrightness….price and time heal markets…. the 20 year monthly chart on the SP500 shows a drop from 1300 to 820 over the last 3 candles….that type of destruction in such a short time frame speaks to the enormity of the crisis at hand….
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banked some coin on the SSO ( should rename it the SOS) and DIG today…heading overnight flat the traders and long a small core holding.
November 18th, 2008 at 4:08 pm
anjing bau Says:

oops the Elks have been outed
November 18th, 2008 at 4:10 pm