One of my finance classes consists partly of a simulated trading game where you get $1mm to invest in the capital markets w/ the option of an additional $1mm leverage. The simulation is coming to an end and my team isn't in first place--which I find unacceptable.
I'm no trader so I need some ideas for a risky position(s) to take in the markets tomorrow that might have a significant payoff. I'm thinking probably some derivative product (maybe some futures or options on crazy volatile equities..idk). I don't really give two shits if my account gets blown up--either want to win by a ridiculous amount or go out with a bang.
I have around $100,000 cash to invest and am willing to leverage it up an additional $1mm.
SB if you give me an idea that wins the competition ;)
Buy calls on the VIX or buy puts on the 3x leveraged financial ETF's.
No penalty for coming in last besides prof/classmates laughing at you?
yea no penalty. The majority of the class is utterly clueless anyways.
I won one of these competitions in my MSF program by betting on currency and oil positions on the last day
naked puts on XLF or FAS for when the SHTF in italy and spain
FAZ calls
I agree with this, but usually it goes up to 44 and then heads back down from what I notice.
I think a put would be a better option at this moment in time.
I bought in when it was 39.04.
we are all on the same page apparently
alright $750k fas puts and faz calls it is...
http://www.zerohedge.com/news/anti-tilson-etf-update-34-four-days-and-r…
I had to cancel those orders after the morning news...couldn't just watch my account blow up when I had some forewarning.
Any other ideas on options plays for today?
buyt TVIX short ERX
What trades did you end up making?
Looks like you should have stuck with the FAS/FAZ trade.
I backed out of the fas puts and faz calls right before the market opened, when i checked they were both down like 20% so avoided death a little i guess. Also, took unforseen's advice and bought some TVIX.
YOu think i should have stuck with the FAZ/FAS? which options on each?
EDIT: you're right i would have made a 100% return if i had stuck with them...dammit
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TVIX up 10% ERX down 7.42%
Took your advice on the TVIX, thanks for that.
I really need to grow a pair with all this fake money.
Round 2, options plays for market open tomorrow?
Oreos has a great idea. Go with the Anti-Tilson ETF! That's an easy play to follow. Also, are you limited to stocks and bonds only? If yo u aren't, I'd consider looking at CDS on banks with major European exposure. Buy CDS, watch the spreads widen an then sell for profit.
Thanks man, I'll go for the anti-tilson etf haha. One question though..might sounds stupid, how would I go about shorting a stock like netflix? is a synthetic short the easiest way?
I'm free to do pretty much whatever so I'll take a look at some CDS as well
I am in a class doing a similar market simulation. I did the fas puts, worked out very well for me. thanks for the help.
you're welcome.
What are your guys thoughts on financials movements tomorrow? overall negative due to the debt committee impasse?
put a long straddle on VXX. on the likely chance that VXX surges close the short leg, rinse and repeat. if VXX collapses buy front month long calls with both hands.
fuck the SB send me some cohibas if you win.
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