Thursday, March 15, 2007

Increasing My Position

I shorted 800 QQQQ @ 42.62 and 2 NQ contracts @ 1752.75. Now I am short the equivalent of 3200 QQQQ shares and have a negative portfolio beta overall (similar to being net short overall but I take into account the sensitivity of each financial instrument to movements in the S&P500) of -0.18. Let's see if this works.


Anonymous said...

hi moom new to your blog i like how u think with goals and clear financial numbers. keep up the good work.

i see you like to trade the QQQQ and NQ is there a particular reason you like the NQ over other indexes like the ES ER YM?

mOOm said...

Hi Jake, welcome!

Originally I traded QQQQ vs. SPY etc. because it has a higher beta so you get more bang for your buck given margin requirements for stocks. In futures that isn't so relevant as the margin required reflects the beta. I find though that the NASDAQ indices because they are more volatile make nicer waves and patterns that seem easier to trade to me.

Since I posted I missed the opportunity to get out at a profit at the lows today... I shorted another 2 contracts @ 1761.25. Portfolio beta is now about -0.49 which is my maximum short position currently.