Shorting Euro – Bought EUO For $18.25
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.
Remember that.
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.
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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.
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How about FXE Leaps instead? Bought some FXY leaps in December that are up 50% already.
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why not just trade spot, and just lever the shit out of your account?
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sorry meant NOT lever the shit out of the account. A lot of staying power and you can add minis
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