Tuesday, March 24, 2009

Initial Transaction - Direxion Small Cap Bull 3x (TNA)

A position in Direxion Small Cap Bull 3x Shares was established on March 23, 2009. This ETF returns 300% of the Russell 2000 index. Since a position was established in BGU, an ETF which returns 3x large cap stocks with a relatively far out-of-the-money call, it was determined that the call for this position should be at the money to minimize overall risk of utilizing leveraged ETFs.

3/24/2009 -- Bought 100 TNA @ 17.545
3/24/2009 -- Sold To Open 1 TNA April $17.50 Call @ 2.2


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1754.50


Downside Coverage: 12.54%
Possible Max Upside: 13.75%

Annualized Max Upside: 165%

No comments:

Post a Comment