Replies to post #23313 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

Hi Ray

http://finance.yahoo.com/q/bc?t=1y&s=SSO&l=on&z=m&q=l&c=&c=%5EGSPC - compare the performance between around and July 06 and March 07.

The way they operate the Ultra appears to be on a daily basis, so if one day the Index rises 2% the ultra rises 4%, if the index falls 2% the ultra falls 4%. Over time the only effect is that you get to the same place but with increased volatility along the way. Yes at times the Ultra may be heavily advanced to the underline, but at some future date typically after a cumulative large price decline the larger losses in the Ultra will realign the two and potentially extend into even larger losses.

Or take http://finance.yahoo.com/q/bc?s=RYTNX&t=2y&l=off&z=m&q=l&c=%5EGSPC between May 05 and mid/late Oct 05, or mid/late October 05 and mid June 06. Or even compare Mid June 06 to March 07 - there a full pull back isn't quite evident in that case, but with around a 25% gain in the S&P for a 31% gain in the RYTNX

Yes there is a potential that a merge of the two wont occur at a future date, hence my indications of potentially using the Short Ultra side as that would be more likely to re-merge.

Also have a look at http://finance.yahoo.com/q/bc?s=RYTNX&t=my&l=off&z=m&q=l&c=%5EGSPC

Best Regards. Clive.