I opened a position in EUO for $18.25. This is a starter position, which I will add to every few weeks/months.
Remember, every time thus far that European authorities have put claim on “the end of the crisis being just in sight”, it has come back to haunt them.
They are playing a confidence game. The realities of the situation are different. Just below the surface, trouble is brewing.
5 Responses to Shorting Euro – Bought EUO For $18.25
Do you really want to use EUO for this considering your weeks/months comment? Because euo’s value is based on double the daily change, unless the euro falls in a straight and constant fashion, the euro could be 20% lower in two months and euo could lose money over that timeframe. All these proshares ultra short funds are really only for short term expected moves.
I understand that. But I don’t think the drop will be gradual. I think EUO will probably fall another 10-15%; I’ll add another batch around March.
Then suddenly, “totally unexpectedly”, Europe erupts again, people freak out, and it rushes higher by 20%.
Also, looking at a 5 year chart of EUO alongside the EURUSD, it really doesn’t appear to me that this particular instrument decays that much.
How about FXE Leaps instead? Bought some FXY leaps in December that are up 50% already.
why not just trade spot, and just lever the shit out of your account?
sorry meant NOT lever the shit out of the account. A lot of staying power and you can add minis