ProShares UltraShort Financials ETF (SKF)

[pythagorahs]

HEllO everyone.. SKF has had a great run ... if anybody bought this and forgot about it.. you make a great trade... anyway i think this thing has topped out it really cant hold above 300, today it looked like it wanted to reach but it got sold off hard into the close. i think APRIL 09 OTM puts say 130 or 140 are looking pretty good.. they are cheap and thye have time value in them which will decay a small bit.. if this thing nosedives one day to around 180 or so.. those puts you bought will be tricky to price because technically volatility is one of the variables that is used to price an options.. what interesting here is when skf is going down the overall market volatility is coming down because of the market relaxing and put buying is relaxing.. but with SKF thats inverse skf coming down means those puts will loose premium quickly.. they will crush vol.. but if you buy now hold and wait till near experation you could be rewarded heavily...

BTW i think skf is topped out.. a mark to market suspention is coming and the uptick will be reinstated.. this will cause the markets to lurch forward quickly in the short term 2 month horizon..