In any case, SCO has a lot more liquidity. The asset never moved with enough momentum for me to consider an options play. As of now the positive divergence doesn't go much beyond 5 mins so I expect this to be a trading position.
5 years ago
Monday, June 3, 2013
Opening Long SCO (2x Short Crude)
I believe SCO is an ETF rather than an ETN, which I believe (however I'm not an accountant and this isn't tax advice) is treated differently as far as taxes go (the ETN I mean).
In any case, SCO has a lot more liquidity. The asset never moved with enough momentum for me to consider an options play. As of now the positive divergence doesn't go much beyond 5 mins so I expect this to be a trading position.
However I think this can still be a worthwhile trade, just remember with this volatility everything long right now is speculative and you need to be able to close the position fast if need be.
In any case, SCO has a lot more liquidity. The asset never moved with enough momentum for me to consider an options play. As of now the positive divergence doesn't go much beyond 5 mins so I expect this to be a trading position.
No comments:
Post a Comment