Free CAPS Points, Get Yer Free CAPS Points
OK, I've given myself enough of a head start on this one. I owe this one to the Bespoke Investment Group. I am about to share some free CAPS points with everyone. I only ask for a blog "rec" in exchange. Pretty good deal right? There's an ETF out there called MACROShares inverse oil, ticker symbol DCR. As if being short oil wasn't a good enough investment these days, this ETF has a special twist. If oil closes at over $111 for three straight days, this ETF basically ceases to exist. That's right, at that point it will pay out investors its net asset value. Because everyone is so bearish on oil right now, thanks Barron's for that, and because there are so few short vehicles to play the down side of it DCR currently trades at well above its net asset value, which at the time I heard about this trade was $3.83. It is probably less than that now that oil has gone up even further.
Oil closed over $111 yesterday. That one day down. It is currently trading at just under $114. If it holds anywhere near there, it will be day two. All we need is one more day and poof we've got a double in the three days since I shorted DCR at $6.41 in CAPS. I wonder how many people just hopped into this one in real life without doing any research and are going to get burned. Man oh man, how I wish I could have shorted this stock in real life. I almost never short stuff in the real world, but this one was too good to be true. I tried and tried to short this baby yesterday morning to no avail. That's why I am able to talk about it without waiting for 10 days. I never got a position. If you are already short this stock, I hate you ;). I kid, I kid.
Anyhow, add this one to your CAPS portfolio immediately.
No position in DCR in real life, short it in CAPS