Perishabull Posted December 4, 2012 Report Share Posted December 4, 2012 Ok, here's another way to illustrate the same concept. Lets take the price of AGQ and ZSL on 1st February 2011? (This is using data from ThinkorSwim) So AGQ was $66.71, and ZSL was $220.8. As I'm sure you are aware 1st February 2011 was during a large run up in silver. So let's take the price of AGQ and ZSL at the top. AGQ was $182.63 on 28th April 2011 and ZSL was $67.15. So if you had bought AGQ on 1st February 2011 at $66.71 and sold on 28th April 2011 at $182.63 you would have made $115.92 per share. If you had shorted ZSL on 1st February 2011 at $220.80 and close the trade on 28th April 2011 at $67.15 you would have made $153.65 per share. So this shows ZSL is a better vehicle to use as a double long than AGQ, and that's irrespective of whether it's a short or long term trade. It just follows that the longer the trade the more advantage is taken of the time decay aspect. Link to comment Share on other sites More sharing options...
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