Easy money... (MACROshares Oil Down Tradeable Trust)
Submitted by Trademaster J on Mon, 06/16/2008 - 01:24
Someone e-mailed me the other day askin if there was still any way to play UCR for cash. UCR's discount over the net asset value is now only around 1%, which be weak sauce for traders who have better things to do. It's what we in the biz call opportunity cost. Truth is, there is a mos def way to keep printin dollaz from the crazyhigh oil prices. Let's take a look at UCR's flipside, DCR.
The premium on DCR is somewhere close to ∞, which is a pretty badass number if you askin me. DCR's net asset value is 0.00 USD you see, and it's likely to stay that way. The stock's trust terminates on June 25th, 2008 and it will terminate at a zero value if NYMEX's sweet light crude August futures look to close above 120.00 USD/barrel on that date.
For me, this is a dun deal, no doubt. I looked around to see who lettin peepz short DCR these days. Turns out my bros at Interactive Brokers are still findin' DCR shares for their clients to short. IB let me borrow a good several thousand shares of DCR to sell short just last week at around 0.40 USD/share, and I be addin more short orders for more. If you keep it a GTC limit order and executable outside regula trading hours there's a good chance it'll hit.
As fo what else I been up to this past week, I laid down a short straddle on GLD (an ETF that tracks gold commodity), writin' the followin contracts:
GLDRG (June 85.00 USD call) at 0.90 USD/share represented.
GLDFG (June 85.00 USD put) at 1.30 USD/share represented.
I figure peepz be scared this week not knowin how inflation's gonna work out. There are only a few days left for this stock to move and ruin my short straddle, but I aint worried; that's just how I roll.
I been playing LEH a lot lately too. This would have been a good candydate for a long straddle. But if you just a playa like me, you just buy puts and calls dependin on the day's general direction after it gets undersold or underbought and still make some good bank.
Disclaimer
Trademaster J aint professionally qualified to be givin you advice. Hell, this thug don't even gots a university degree. He just a punk ass wall street thug with a computer machine. Trademaster J makes some tight plays sometimes, but his game be high-risk. His option plays be sum serious gamblin. This here weblog is for yo entertainment. Don't be hookin yo fancy c0dez up to it to make real time plays based on his postins or nothin like that. Faux realz. Peace.
dcr short shares
i cant believe you were able find shorts out there, lucky you and way to have sack to do it, i could not determine what would happen at the end and what would happen when it went to zero and you dont have anything??? i started watching this one at $1.84 shiz, woulda coulda shudda
GLD straddle update.
If any of you was wonderin how that GLD straddle went... pretty bad, yo. GLD just kept climbin'. I covered that short straddle at a premium over 3.00 USD per share represented, which was at a loss. Short straddlin anything relating to a commodity these days looks to be bad news.