The FAS and FAZ Make Stock Market Volatility Look Like Child's Play
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Since Monday, when several news items (1. Citigroup (NYSE: C) said it would be profitable, 2. Fed Chairman Bernanke addressed mark-to-market issues, and 3. Barney Frank said he expects to see the uptick rule back sometime within a month) sparked an on-going rally in financials, volatility in two 3x leveraged ETF's has been off-the-charts. The Financial Bull 3x (NYSE: FAS) and Financial Bear 3x (NYSE: FAZ), two fairly new ETF's, have had double-digit percentage moves in 2 of the last 4 trading days.
The FAS has nearly doubled since Friday of last week, moving from $2.64 to close at $5.05. Meanwhile, amid the turmoil at Citi, AIG (NYSE: AIG) and Bank of America (NYSE: BAC), the short financial fund, the FAZ sunk from as high as $109 on Monday to close at $41.52, a drop of about 62%.
The volume in these names has also been extreme this week. For example, the FAS traded nearly 300 million times today, compared to its average daily volume of about 150 million shares.
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FAS
why would anyone comment on if it doubled or nearly doubled in the article, the guy stated he has a double on his stock trade and some idiot mentions about it being nearly a double in the article?? Who cares?? The article says one thing and he is saying another about his trade, the main thing is that anyone that was smart enough to buy in the 2 dollar range has been rewarded, I am not going to sit here and brag about my trades, but I will say that FAS at anything below $6 is a great long, I don't care what boards say about holding this stock, I am not selling FAS until it hits $10, and make a 5 bagger, so good luck to all us longs and sorry to all in FAZ, Mark Silver millionaireblueprints.scriptmania.com
FAS
FAS has more than doubled. It's low was not 2.64. I know this because I bought several thousand shares under 2.50.
Actually
Actually it says nearly doubled so you are wrong
ETFs
Doesn't matter X2, X4 because most of the dullards that mess with these ETFs are going to go broke sooner rather than later. Do the math people and read the prospectus from these clip joints. Most of the people that invested in this tradable garbage think they are going to move two or three times the underlying stock indexes on any given day. Read the posts on Yahoo. It's sad.
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Options
Craig on Mar 13, 2009 12:21 PMTry trading the options on these. It's the wild west. You could lose everything but also get a 5 banger in a week.