Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Hey Fellow Slopers,
On Friday, Tim Knight warned that the United States Natural Gas ETF (UNG) might be headed for steep leg down (“Is Natural Gas about to break wind“) For any investors who are thinking of holding their noses and staying long anyway, I thought I’d post a couple of quick ways to add downside protection to that ETF. (more…)
Getting Paid To Limit Downside On DUST
As Tim has noted (in this post last month, for example) precious metals and related securities remain in a multiyear bear market. As that bear market has continued this year in gold, gold miners, and ETFs that track them, shares of the Direxion Daily Gold Miners Bear 3x Shares ETF (DUST) have gained 116% year-to-date as of Monday, October 21st’s close. DUST is quite volatile though, as triple-leveraged ETFs typically are, and that means it can move against longs fairly quickly. For example, DUST dropped about 23% in the last week, from October 14th to October 21st. For DUST longs holding gains from earlier this year, but wary of downside risk going forward, below is a way you can get paid to hedge. (more…)
Last month on Slope, we looked at how an hedge on JC Penney (JCP) from mid-August had reacted to the stock’s fall up until that point (“Softening The Blow For JC Penney Longs“). With JCP falling below $8 per share to a new 31-year low on Friday, I thought I’d post a quick update on that hedge. Recall that we initially posted that hedge on August 13th (“Getting Paid To Hedge Bill Ackman’s Riskiest Investment”). (more…)
Shares of JC Penney (JCP) dropped nearly 15% Wednesday, after analysts warned of the company’s risk of bankruptcy. Any JCP longs who read Slope and heeded Tim’s warnings (e.g., this one) were out long before Wednesday’s slide, but for those who decided to stay long, I posted a way to hedge JCP last month (“Getting Paid To Hedge Bill Ackman’s Riskiest Investment”). In this post we’ll look at how that hedge would have softened the blow for JCP longs on Wednesday. (more…)
Teen clothing retailer American Eagle Outfitters (AEO) dropped nearly 18% after hours Monday, after lowering guidance. Out of curiosity, I checked the cost of hedging AEO during market hours on Monday, and it turns out AEO longs could have gotten paid to hedge before the earnings miss. (more…)
