Replies to post #326 on Direxion Daily S&P 500 Bear 3X Shares (SPXS)

[wadirum1]

Can I ask why you are buying call options on SPXS rather than put options on a long SPX leveraged index fund?

I have been reading Hussman's posts on Seeking Alpha.

He has been overly pessimistic for the past 4 years, and he admits it. But the argument in favor of a major correction is pretty darn persuasive.

The problem is that there is no way to know when it will happen. If people go nuts enough, the Dow could double from here -- though that would simply mean that it has all the further to drop.

Valuations look just like they did in 2000 and 2007 -- in fact more so. And Hussman uses earnings as they were predicted to be in 2020 before the pandemic hit, so he isn't using the temporary dip to make his argument.

I remain very pessimistic -- and I might just have to buy some options as insurance.