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Ballsy. I'd hold this stuff short-term only, ideally only for a day because of the decay. And because Yellen-o-matic and the cronies at the Fed will do everything to keep this market levitating until they have to taper close enough to a dollar crisis. I like SRS below $20 here a bit better, but they often do move in lockstep. Housing has topped out.
My goal is to sell when I double my money (if it happens in next couple of weeks). Otherwise I am hoping i would come out without too much loss
Its retarded. Tons of decay on FAZ, and the delta on an option that far out of the money is about .25. That means in order for you to "double your money" the stock has to increase about $4 per share in the next month or so.
Almost 20% increase in a stock with that much decay, a beta value of -3.66 in a rising market is akin to putting money on a single number in roulette, but you are hoping for a 1x payout on a 1/35 chance. Bad odds.
For FAZ to increase 20% in a month, the Russell 1000 Financial index needs to fall 7-8% in the next month.
Very, very low probability.
Do you even know the companies in the Russell 1000 financial services index? Hint: It is not just Bank stocks. Berkshire Hathaway, Fiserv, Equifax, Thomson Reuters, Fiserv, Rayonier, Western Union - just to name a few...
What do you think?