S&P 500 Index v. UltraShort S&P500 ProShares ETF. Ouch. Thanks Cox.
Chart after the jump.
(Hat tip - JAB)
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Posted by guest , Sep 24, 2008 12:12PM
seriously??? ever hear about special dividends
come on
Posted by hedgehog , Sep 24, 2008 12:15PM
#1 I don't follow - the ultrashort EFTs are constructed from a swap on the underlying's return. How would a special dividend result in them suddenly being positively correlated?
Posted by ep , Sep 24, 2008 12:18PM
You have to be from Equities in Dallas to understand.
Posted by guest , Sep 24, 2008 12:25PM
#2 they are correlated today since they are both unch'd?
what are you asking
Posted by guest , Sep 24, 2008 12:28PM
is clay really out? maybe bernanke can help him.
Posted by guest , Sep 24, 2008 12:28PM
is clay really out? maybe bernanke can help him.
Posted by guest , Sep 24, 2008 12:28PM
I heard Clay Aiken likes Fritos.
Posted by StupidEquityGuy , Sep 24, 2008 12:29PM
Who is JAB?
Seriously, has anyone tried to short an ETF lately? There is zero borrow available...
On the SDS, pull a quote of it from Bloomie and a quote from Redi...
Posted by guest , Sep 24, 2008 12:30PM
especially on chili dogs.....
Posted by Master of None , Sep 24, 2008 12:30PM
This jumped out at me at about 9:31am today and I freaked a little bit. I had to double check with our ETF desk because I'd never seen a dividend that large come out of these funds.
SDS distributed $3.83
DXD distributed $3.65
Posted by guest , Sep 24, 2008 12:33PM
to clay aiken "ETF"stands for extra tight fanny. ty.
Posted by Suits , Sep 24, 2008 12:41PM
8
Had trouble getting a borrow on IWM 2 days ago. IWM!
Posted by guest , Sep 24, 2008 12:47PM
Clay Aiken is more man than Hilary Clinton will ever be.
Posted by guest , Sep 24, 2008 12:48PM
any ideas as to why these extraordinary divs distributed?
they giving back the profit they made on AI and/or Lehman?
Posted by guest , Sep 24, 2008 12:48PM
#'s 5,6 and eleven, i feel like we've met before??
Posted by guest , Sep 24, 2008 12:51PM
*AIG
- 14
Posted by StupidEquityGuy , Sep 24, 2008 12:55PM
try and short the SPY... the SPY... seriously... let me know who has shares to borrow if you can...
Posted by guest , Sep 24, 2008 1:18PM
It's fucked up out there. Had a big position in SKF that I unloaded because I'm concerned about price action and now counterparty risks with the swaps. Imagine that the financial sector implodes and you fucking lose money on SKF!
Posted by guest , Sep 24, 2008 1:19PM
@3 - nice "Liar's Poker" reference
Posted by guest , Sep 24, 2008 1:19PM
Just got a locate on 20K SPY. Took a phone call though.
Posted by StupidEquityGuy , Sep 24, 2008 1:25PM
#20, ty ... will have my guys call around... can you hint to who is saying they have supply?
Damn, this conversation sounds like we are setting up a drug deal, or something illegal. Wait, is shorting ETF's illegal now? I forgot to check today's rule changes.
Oh, and one question to no... When did IBM become a financial that must be protected? WTF....
~SEG
Posted by guest , Sep 24, 2008 1:37PM
@21 - Try GS.
Posted by StupidEquityGuy , Sep 24, 2008 1:44PM
Thanks #22, I tried Redi and it rejected, I had my desk call the Gs stock loan and they said they were giving them out earlier today, but now its Redi or nothing. No more loans over the phone...
So if someone else jumped the shark on SPY shares... hope the fill works... looks like I am stuck with my puts for now...
Posted by guest , Sep 24, 2008 2:09PM
there is no borrow on just about any ETF, especially one with even 1 financial stock in it. overseas stuff a total no go as well.
Posted by guest , Sep 24, 2008 2:10PM
@20, etc...Can't you guys just trade S&P futures?
Posted by guest , Sep 24, 2008 2:19PM
#3 are there Equities in NYC anymore?
Posted by StupidEquityGuy , Sep 24, 2008 2:27PM
Yes on futures, but limited to 5% total fund AUM for futures exposure. I reserve that % for my commodity futures exposure. Ergo I am stuck with hedging my equity risk via equity type exposure.
The end of financial shorts has caused my boys to turn to shorting blow off spikes in commodity stocks, which is about the last thing on the planet we would normally be doing. We have ran a long commodity - short financial trade for ages.
This market is getting harder and harder to maneuver in. We covered all of our shorts a week ago Monday when MER got owned... Sometimes its nice to be lucky verses good. Problem is I am down to puts for down side exposure...
~SEG
Posted by guest , Sep 24, 2008 2:32PM
27- are you a fundie type investor? Surely there are plenty of other non-financials that are going to take a ride on the pain train.
Posted by StupidEquityGuy , Sep 24, 2008 3:52PM
was a fundie... will be again someday, however for now am just a long Vol junky...
I have removed all of my short vol trades... I have zero open margin over night now. Am sitting on a wad of cash and holding a basket of long calls and puts and I just toss shit over the side as it puffs up in value.
am green YTD and MTD so its working... but my internal volatility is eye opening... I am at historic levels of cash on the side lines to try and smooth the moves.
Posted by guest , Sep 24, 2008 4:47PM
New York is dead. I WISH I was in Dallas, for the babes more than anything.
Posted by guest , Sep 25, 2008 8:07AM
you can short SSO with a half position which would be a synthetic equivalent to shorting SPY full position.
SSO is double long of S&P