Leveraged ETFs (31 Aug 11)

Leveraged ETFs

A Leveraged ETF offers the investor a simple way to buy a broad index or sector with double or triple the exposure of the underlying index. A Leveraged ETF will allow investors to put a leveraged bet on either side of the market, long or short.  This means that you can buy a 2x or 3x bearish ETF which will increase when the market heads south; these are commonly referred to as inverse leveraged ETFs.  Conversely, you could buy a 2x or 3x bullish fund which will increase when the market moves higher.  These instruments are particularly useful for gaining exposure to the bearish side of the market in a rollover IRA or traditional IRA, where margin and short selling are restricted. 

Direxion Small Cap Bull 3X (TNA) $49.25

Profit Target (20%): $59.10  

Trailing-Stop (ATR x 2): $11.66

ProShares Ultra Basic Materials (UYM) $39.98

Profit Target (20%): $48.00  

Trailing-Stop (ATR x 2): $5.60

Direxion Technology Bull 3X (TYH) $34.49

Profit Target (20%): $41.40  

Trailing-Stop (ATR x 2): $6.32

Direxion Large Cap Bull 3X (BGU) $58.87

Profit Target (20%): $70.65 

Trailing-Stop (ATR x 2): $10.52

ProShares UltraPro S&P 500 (UPRO) $57.18

Profit Target (20%): $68.65  

Trailing-Stop (ATR x 2): $9.86

Trading leveraged ETFs comes with a significant amount of risk, especially if the market begins moving against you. This is why advisers recommend using a stop loss order.  A trailing stop  causes a stock to be sold if it falls a particular dollar amount from the most recent high.

All positions displayed are for educational purposes only and are not intended to be recommendations.

Traditional ETFs (31 Aug 11)

Traditional ETFs

A Traditional ETF is essentially an index fund that trades like a stock.  There are traditional ETFs covering everything from broad stock indexes to individual commodities.  These ETFs are useful tools for inexpensively diversifying your portfolio, and they are available in all major asset classes.  If you generally like to pick individual stocks but you don’t know much about a certain sector or region, you could use an ETF to complement your stock allocation so that you’re more broadly diversified.

iShares Russell 2000 (IWM) $72.80

Profit Target (15%): $83.75  

Trailing-Stop (ATR x 2): $5.74

SPDR S&P Retail (XRT) $49.25

Profit Target (15%): $56.65  

Trailing-Stop (ATR x 2): $3.88

Materials SPDR (XLB) $35.25

Profit Target (15%): $40.55  

Trailing-Stop (ATR x 2): $2.32

Industrial SPDR (XLI) $32.18

Profit Target (15%): $37.00  

Trailing-Stop (ATR x 2): $2.20

Consumer SPDR (XLY) $37.34

Profit Target (15%): $42.95 

Trailing-Stop (ATR x 2): $2.32

Like stocks, ETFs are traded on major U.S. stock exchanges and can be bought and sold anytime during normal trading hours.  Because of their diversification, the price movement in ETFs is more predictable than in individual stocks.

All positions displayed are for educational purposes only and are not intended to be recommendations.

Leveraged ETFs (29 Aug 11)

Leveraged ETFs

A Leveraged ETF offers the investor a simple way to buy a broad index or sector with double or triple the exposure of the underlying index. A Leveraged ETF will allow investors to put a leveraged bet on either side of the market, long or short.  This means that you can buy a 2x or 3x bearish ETF which will increase when the market heads south; these are commonly referred to as inverse leveraged ETFs.  Conversely, you could buy a 2x or 3x bullish fund which will increase when the market moves higher.  These instruments are particularly useful for gaining exposure to the bearish side of the market in a rollover IRA or traditional IRA, where margin and short selling are restricted. 

VelocityShares Daily 2x VIX ST (TVIX) $55.54

Profit Target (20%): $66.65  

Trailing-Stop (ATR x 2): $14.24

PowerShares DB Gold Double (DGP) $67.31

Profit Target (20%): $80.80  

Trailing-Stop (ATR x 2): $5.60

ProShares Ultra Silver (AGQ) $224.30

Profit Target (20%): $269.20  

Trailing-Stop (ATR x 2): $32.20

Direxion Emerg Mkts Bear 3X (EDZ) $23.86

Profit Target (20%): $28.65 

Trailing-Stop (ATR x 2): $4.34

ProShares UltraShort Crude Oil (SCO) $57.76

Profit Target (20%): $69.30  

Trailing-Stop (ATR x 2): $7.94

Trading leveraged ETFs comes with a significant amount of risk, especially if the market begins moving against you. This is why advisers recommend using a stop loss order.  A trailing stop  causes a stock to be sold if it falls a particular dollar amount from the most recent high.

All positions displayed are for educational purposes only and are not intended to be recommendations.

Traditional ETFs (29 Aug 11)

Traditional ETFs

A Traditional ETF is essentially an index fund that trades like a stock.  There are traditional ETFs covering everything from broad stock indexes to individual commodities.  These ETFs are useful tools for inexpensively diversifying your portfolio, and they are available in all major asset classes.  If you generally like to pick individual stocks but you don’t know much about a certain sector or region, you could use an ETF to complement your stock allocation so that you’re more broadly diversified.

iPath S&P 500 VIX Short-Term Futures (VXX) $41.07

Profit Target (15%): $47.25  

Trailing-Stop (ATR x 2): $6.06

SPDR Gold Shares (GLD) $177.47

Profit Target (15%): $204.10  

Trailing-Stop (ATR x 2): $8.28

iShares 20+ Year Treas Bond (TLT) $108.49

Profit Target (15%): $124.75  

Trailing-Stop (ATR x 2): $4.50

Market Vectors Gold Miners (GDX) $62.48

Profit Target (15%): $71.85  

Trailing-Stop (ATR x 2): $4.52

iShares Silver Trust (SLV) $40.41

Profit Target (15%): $46.50 

Trailing-Stop (ATR x 2): $2.98

Like stocks, ETFs are traded on major U.S. stock exchanges and can be bought and sold anytime during normal trading hours.  Because of their diversification, the price movement in ETFs is more predictable than in individual stocks.

All positions displayed are for educational purposes only and are not intended to be recommendations.

Long Call (29 Aug 11)

Long Call (ETFs)

A Call option gives the buyer the right to buy stock at a specific price (strike price) on or before a specific date in the future (expiration date).  When you purchase a Call option you are basically betting that the price of the underlying stock will rise.  The Call buyer loses money if the underlying stock does not rise before the expiration date.

VXX  $41.07

Buy to Open (1) Jan 12 42 C @ $8.85 

Net Debit: $8.85 ($885.00)

Profit Target (50%): $13.30 ($1,330.00)

Stop-Loss Point (50%): $4.50 ($450.00) 

GLD  $177.47

Buy to Open (1) Jan 12 180 C @ $11.50 

Net Debit: $11.50 ($1,150.00)

Profit Target (50%): $17.25 ($1,725.00)

Stop-Loss Point (50%): $5.75 ($575.00) 

TLT  $108.49

Buy to Open (1) Jan 12 110 C @ $4.15 

Net Debit: $4.15 ($415.00)

Profit Target (50%): $6.25 ($625.00)

Stop-Loss Point (50%): $2.10 ($210.00)

GDX  $62.48

Buy to Open (1) Jan 12 65 C @ $4.10 

Net Debit: $4.10 ($410.00)

Profit Target (50%): $6.15 ($615.00)

Stop-Loss Point (50%): $2.05 ($205.00)

SLV  $40.41

Buy to Open (1) Jan 12 40 C @ $4.85 

Net Debit: $4.85 ($485.00)

Profit Target (50%): $7.25 ($725.00)

Stop-Loss Point (50%): $2.40 ($240.00)

 

REMEMBER: “When there is a small movement in the stock, there is a magnified movement in the option”.  The “Long Call” strategy can be easily transformed into a “Bull Call Spread”, “Calendar Call Spread”, or “Diagonal Call Spread”.   

All positions displayed are for educational purposes only and are not intended to be recommendations.

Long Put (29 Aug 11)

Long Put (ETFs)

A Put option gives the buyer the right to sell stock at a specific price (strike price) on or before a specific date in the future (expiration date).  When you purchase a Put option you are basically betting that the price of the underlying stock will fall.  The Put buyer loses money if the underlying stock does not fall before the expiration date.

VWO  $41.60

Buy to Open (1) Jan 12 42 P @ $4.60 

Net Debit: $4.60 ($460.00)

Profit Target (50%): $6.90 ($690.00)

Stop-Loss Point (50%): $2.30 ($230.00) 

EEM  $40.52

Buy to Open (1) Jan 12 40 P @ $3.60 

Net Debit: $3.60 ($360.00)

Profit Target (50%): $5.40 ($540.00)

Stop-Loss Point (50%): $1.80 ($180.00) 

EWZ  $61.32

Buy to Open (1) Jan 12 60 P @ $5.55 

Net Debit: $5.55 ($555.00)

Profit Target (50%): $8.35 ($835.00)

Stop-Loss Point (50%): $2.75 ($275.00) 

FXI  $36.96

Buy to Open (1) Jan 12 36 P @ $2.76 

Net Debit: $2.76 ($276.00)

Profit Target (50%): $4.15 ($415.00)

Stop-Loss Point (50%): $1.40 ($140.00)

USO  $33.15

Buy to Open (1) Jan 12 33 P @ $3.45 

Net Debit: $3.45 ($345.00)

Profit Target (50%): $5.20 ($520.00)

Stop-Loss Point (50%): $1.75 ($175.00)

REMEMBER: “When there is a small movement in the stock, there is a magnified movement in the option”.  The “Long Put” strategy can be easily transformed into a “Bear Put Spread”, “Calendar Put Spread”, or “Diagonal Put Spread”.   

All positions displayed are for educational purposes only and are not intended to be recommendations.

Bull Call Spread (29 Aug 11)

Bull Call Spread (ETFs)

A Bull Call spread is a debit spread created by purchasing a Call with a lower strike price and selling a Call with a higher strike price.  Both options expire in the same month.  This is a bullish strategy and should be implemented when you expect the market to close above the strike price of the short Call option—the point of maximum reward (at expiration).  

VXX  $41.07

Buy to Open (1) Sep 11 35 C @ $7.25

Sell to Open (1) Sep 11 40 C @ $4.15 

Net Debit: $3.10 ($310.00)

Breakeven: $38.10

Max. Profit: $190.00

Pct Return: 61.3% (19 days)

GLD  $177.47

Buy to Open (1) Sep 11 172 C @ $8.50

Sell to Open (1) Sep 11 177 C @ $5.55 

Net Debit: $2.95 ($295.00)

Breakeven: $174.95

Max. Profit: $205.00

Pct Return: 69.5% (19 days)

TLT  $108.49

Buy to Open (1) Sep 11 104 C @ $5.15

Sell to Open (1) Sep 11 109 C @ $2.08 

Net Debit: $3.07 ($307.00)

Breakeven: $107.07

Max. Profit: $193.00

Pct Return: 62.9% (19 days)

GDX  $62.48

Buy to Open (1) Sep 11 59 C @ $4.50

Sell to Open (1) Sep 11 64 C @ $1.45 

Net Debit: $3.05 ($305.00)

Breakeven: $62.05

Max. Profit: $195.00

Pct Return: 63.9% (19 days)

SLV  $40.41

Buy to Open (1) Sep 11 37 C @ $4.00

Sell to Open (1) Sep 11 42 C @ $1.09 

Net Debit: $2.91 ($291.00)

Breakeven: $39.91

Max. Profit: $209.00

Pct Return: 71.8% (19 days)

All positions displayed are for educational purposes only and are not intended to be recommendations.

Bear Put Spread (29 Aug 11)

Bear Put Spread (ETFs)

A Bear Put spread is a debit spread created by purchasing a Put with a higher strike price and selling a Put with a lower strike price.  Both options expire in the same month.  This is a bearish strategy and should be implemented when you expect the market to close below the strike price of the short Put option—the point of maximum reward (at expiration).  

VWO  $41.60

Buy to Open (1) Sep 11 45 P @ $3.70

Sell to Open (1) Sep 11 40 P @ $0.90 

Net Debit: $2.80 ($280.00)

Breakeven: $42.20

Max. Profit: $220.00

Pct Return: 78.6% (19 days)

EEM  $40.52

Buy to Open (1) Sep 11 44 P @ $3.80

Sell to Open (1) Sep 11 39 P @ $0.85 

Net Debit: $2.95 ($295.00)

Breakeven: $41.05

Max. Profit: $205.00

Pct Return: 69.5% (19 days)

EWZ  $61.32

Buy to Open (1) Sep 11 66 P @ $5.15

Sell to Open (1) Sep 11 61 P @ $2.05 

Net Debit: $3.10 ($310.00)

Breakeven: $62.90

Max. Profit: $190.00

Pct Return: 61.3% (19 days)

FXI  $36.96

Buy to Open (1) Sep 11 40 P @ $3.30

Sell to Open (1) Sep 11 35 P @ $0.66 

Net Debit: $2.64 ($264.00)

Breakeven: $37.36

Max. Profit: $236.00

Pct Return: 89.4% (19 days)

USO  $33.15

Buy to Open (1) Sep 11 37 P @ $4.05

Sell to Open (1) Sep 11 32 P @ $0.92 

Net Debit: $3.13 ($313.00)

Breakeven: $33.87

Max. Profit: $187.00

Pct Return: 59.7% (19 days)

All positions displayed are for educational purposes only and are not intended to be recommendations.

Leveraged ETFs (22 Aug 11)

Leveraged ETFs

A Leveraged ETF offers the investor a simple way to buy a broad index or sector with double or triple the exposure of the underlying index. A Leveraged ETF will allow investors to put a leveraged bet on either side of the market, long or short.  This means that you can buy a 2x or 3x bearish ETF which will increase when the market heads south; these are commonly referred to as inverse leveraged ETFs.  Conversely, you could buy a 2x or 3x bullish fund which will increase when the market moves higher.  These instruments are particularly useful for gaining exposure to the bearish side of the market in a rollover IRA or traditional IRA, where margin and short selling are restricted. 

PowerShares DB Gold Double (DGP) $69.14

Profit Target (20%): $83.00  

Trailing-Stop (ATR x 2): $4.02

VelocityShares Daily 2x VIX ST (TVIX) $59.94

Profit Target (20%): $71.95  

Trailing-Stop (ATR x 2): $11.94

ProShares UltraShort Basic Materials (SMN) $24.07

Profit Target (20%): $28.90 

Trailing-Stop (ATR x 2): $3.02

ProShares UltraShort Russell 2000 (TWM) $60.69

Profit Target (20%): $72.85  

Trailing-Stop (ATR x 2): $7.92

ProShares Ultra Silver (AGQ) $241.57

Profit Target (20%): $289.90  

Trailing-Stop (ATR x 2): $28.02

Trading leveraged ETFs comes with a significant amount of risk, especially if the market begins moving against you. This is why advisers recommend using a stop loss order.  A trailing stop  causes a stock to be sold if it falls a particular dollar amount from the most recent high.

All positions displayed are for educational purposes only and are not intended to be recommendations.

Traditional ETFs (22 Aug 11)

Traditional ETFs

A Traditional ETF is essentially an index fund that trades like a stock.  There are traditional ETFs covering everything from broad stock indexes to individual commodities.  These ETFs are useful tools for inexpensively diversifying your portfolio, and they are available in all major asset classes.  If you generally like to pick individual stocks but you don’t know much about a certain sector or region, you could use an ETF to complement your stock allocation so that you’re more broadly diversified.

SPDR Gold Shares (GLD) $179.95

Profit Target (15%): $206.95  

Trailing-Stop (ATR x 2): $5.96

iPath S&P 500 VIX Short-Term Futures (VXX) $42.55

Profit Target (15%): $48.95  

Trailing-Stop (ATR x 2): $5.44

iShares 20+ Year Treas Bond (TLT) $111.20

Profit Target (15%): $127.90  

Trailing-Stop (ATR x 2): $4.78

iShares Silver Trust (SLV) $41.68

Profit Target (15%): $47.95  

Trailing-Stop (ATR x 2): $2.64

Market Vectors Gold Miners (GDX) $61.26

Profit Target (15%): $70.45  

Trailing-Stop (ATR x 2): $3.92

Like stocks, ETFs are traded on major U.S. stock exchanges and can be bought and sold anytime during normal trading hours.  Because of their diversification, the price movement in ETFs is more predictable than in individual stocks.

All positions displayed are for educational purposes only and are not intended to be recommendations.

Long Call (22 Aug 11)

Long Call (ETFs)

A Call option gives the buyer the right to buy stock at a specific price (strike price) on or before a specific date in the future (expiration date).  When you purchase a Call option you are basically betting that the price of the underlying stock will rise.  The Call buyer loses money if the underlying stock does not rise before the expiration date.

GLD  $179.95

Buy to Open (1) Jan 12 180 C @ $12.55 

Net Debit: $12.55 ($1,255.00)

Profit Target (50%): $18.85 ($1,885.00)

Stop-Loss Point (50%): $6.30 ($630.00) 

VXX  $42.55

Buy to Open (1) Jan 12 44 C @ $10.10 

Net Debit: $10.10 ($1,010.00)

Profit Target (50%): $15.15 ($1,515.00)

Stop-Loss Point (50%): $5.05 ($505.00) 

TLT  $111.20

Buy to Open (1) Jan 12 115 C @ $3.70 

Net Debit: $3.70 ($370.00)

Profit Target (50%): $5.55 ($555.00)

Stop-Loss Point (50%): $1.85 ($185.00)

SLV  $41.68

Buy to Open (1) Jan 12 42 C @ $4.80 

Net Debit: $4.80 ($480.00)

Profit Target (50%): $7.20 ($720.00)

Stop-Loss Point (50%): $2.40 ($240.00)

 

GDX  $61.26

Buy to Open (1) Jan 12 62 C @ $5.65 

Net Debit: $5.65 ($565.00)

Profit Target (50%): $8.50 ($850.00)

Stop-Loss Point (50%): $2.85 ($285.00)

REMEMBER: “When there is a small movement in the stock, there is a magnified movement in the option”.  The “Long Call” strategy can be easily transformed into a “Bull Call Spread”, “Calendar Call Spread”, or “Diagonal Call Spread”.   

All positions displayed are for educational purposes only and are not intended to be recommendations.