Comments on: A different kind of straddle with etf’s? https://blog.yhuang.org/?p=126 here. Tue, 14 Oct 2025 11:10:14 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: me https://blog.yhuang.org/?p=126&cpage=1#comment-58546 me Fri, 06 Mar 2009 06:23:53 +0000 http://scripts.mit.edu/~zong/wpress/?p=126#comment-58546 I don't do much trading, although I did simulate as well as try this for a few months earlier last year, before this post. It sort of worked. The downside insurance certainly worked for a while, but the inverse ETF's bled too much and it's totally opaque why. What I mean is, they really don't track their respective indexes very well. The other practical issue is when to enter and exit these strategies. That is never clear. I don’t do much trading, although I did simulate as well as try this for a few months earlier last year, before this post.

It sort of worked. The downside insurance certainly worked for a while, but the inverse ETF’s bled too much and it’s totally opaque why. What I mean is, they really don’t track their respective indexes very well.

The other practical issue is when to enter and exit these strategies. That is never clear.

]]> By: Rob A. Hartop https://blog.yhuang.org/?p=126&cpage=1#comment-58523 Rob A. Hartop Fri, 06 Mar 2009 02:55:13 +0000 http://scripts.mit.edu/~zong/wpress/?p=126#comment-58523 Very nice thought experiment. I had been pondering the very same strategy and found your post after searching google. I've been developing a simple spreadsheet to simulate EXACTLY these principles--and specifically the scenario involving only small movements in the market. Do you trade ETFs personally? Rob Hartop Very nice thought experiment. I had been pondering the very same strategy and found your post after searching google.

I’ve been developing a simple spreadsheet to simulate EXACTLY these principles–and specifically the scenario involving only small movements in the market.

Do you trade ETFs personally?

Rob Hartop

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