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    How to earn on a black swan?

    15 Feb 2018

    Dear readers, let me come back to the interesting events of the past week, which literally brought a storm to calm waters of the financial markets and brought an unexpectedly high volatility to the financial world. To events that are to a certain extent extreme and respectful with regard to the speed at which they […]

    Inefficient ETF and Option Vertical Spreads (1/2)

    8 Feb 2018

    In previous parts of this series, we have explained some basic strategies and approaches to shortening inefficient ETFs / ETNs – whether it was a short or option strategy short call or long put strategy. We have explained their advantages and disadvantages. In this work, I would like to focus on my favorite strategy, which […]

    Inefficient ETFs and long put option strategy

    1 Feb 2018

    In previous parts of this series, I have explained the basics of ETF short strategy and naked short call strategy. With both strategies, we can benefit from the decline of the underlying ETF to gain an interesting profit, but – as we have seen – with the thread of the theoretically unlimited loss. It is […]

    Reverse split and options

    25 Jan 2018

    In the last part I have described the basic principles of short-call strategy trading in connection with inefficient ETFs. I have noted that in a situation where the price of the ETF reaches a low level, there might appear a so-called reverse split (the conditions under which it occurs, are usually described in the fund´s […]

    Short call option strategies and inefficient ETFs

    18 Jan 2018

    In the last part, I have described the basic outlines of the ETF’s direct shorting strategy. We have explained that, despite the undeniable yield potential, such strategy also brings many risks that must be kept in mind. Today I would like talk about option strategies that can also be used to short most of the […]

    Trading strategies for inefficient ETFs – basic overview

    11 Jan 2018

    Today’s part of my educational series will focus on specific strategies that can be used for trading inefficient leveraged ETFs. I think, that those who read my articles on a regular basis understand, that keeping these products for a long time – to have these ETFs in the portfolio – is kind of financial suicide. […]

    PF 2018 and a list of the most losing ETFs in 2017

    4 Jan 2018

    I want to write my first post in the new year as a small recapitulation and a look back to the last year from the ETF point of view, and especially – and as you can probably guess – to those that did badly last year. Paradoxically, those are the most interesting for us.   […]

    Leveraged ETFs risks and what to look after

    21 Dec 2017

    In the last part of the series, we have described the main potential issues connected to the holding of leveraged ETFs for a long time – it is so called compounding, or tracking-error, as we say in our fund. When the market is volatile, this phenomenon can wreak havoc on the value of the leveraged […]

    Introduction to leveraged ETFs

    14 Dec 2017

    In this part of my series, I will make an introduction to the leveraged ETFs and explain how the “tracking-error” or if you want compounding works with those instruments. The leveraged ETFs are designed in the way that their daily % yield or loss is multiplied compare to the non-leveraged instrument. At first glance, this […]

    Contango and inefficient commodity ETFs

    7 Dec 2017

    In the previous articles, I explained what does contango mean, what the VIX index is, and how some ETF / ETNs work in the volatile markets. I have focused mainly on the inefficiencies which are brought by such construction and which can be very interesting for our trading.   In today’s article, I would like […]