Friday, April 15, 2011

Relative Exuberance

In case you were wondering...
I went the full monty at silver today, courtesy of ZSL. 
  • 4/19 Update:
 To catch what will likely be a violent reversal, drawdown on this kind of leveraged trading vehicle during its blowoff stage is expected. Because I don't actively manage the position and it is standing without extraneous margin - I am comfortable with significant erosion of the position before the reversal materializes. This is a HIGHLY speculative and HIGH RISK position that will trade like an option.
  • 4/27 Update: 
    My cost basis for this trade now stands at 15.12 for ZSL. My initial position was purchased at 17.86 on 4/15. I bought three additional equal tranches this week at 14.12, 15.34 and 13.16. My trades were disclosed in real-time on Twitter (here)
Disclaimer: This is not investment advice. Always do your own due diligence. Erik Swarts is not a registered investment advisor. Under no circumstances should any content from this website be used or interpreted as a recommendation for any investment or trading approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor.