Short Strategy Recommendations?

[eigenvector]

Hi,

I'm looking for an ASX200 index short trade (option?) that would fulfill the following criteria:

1) Highly leveraged.
2) I can't loose more than my equity.
3) If the index goes up, I loose all of my equity (obviously).
4) If the index goes down 0.1% to 15%, I loose all of my equity
5) If the index goes down more 15% or more, the trading position gains very substantially.
6) Can be exercised anytime before expiration date.

Does such a trading product exist? Any suggestions much appreciated.

David

 

[Zaxon]

2) I can't loose more than my equity.

I think options (buy side) and warrants meet this criteria the best, since you pay a fee to own them, but you're not forced to execute them should the market go against you.

 

[cutz]

Hi,

I'm looking for an ASX200 index short trade (option?) that would fulfill the following criteria:

1) Highly leveraged.
2) I can't loose more than my equity.
3) If the index goes up, I loose all of my equity (obviously).
4) If the index goes down 0.1% to 15%, I loose all of my equity
5) If the index goes down more 15% or more, the trading position gains very substantially.
6) Can be exercised anytime before expiration date.

Does such a trading product exist? Any suggestions much appreciated.

David

Yeah,

It's called an Out Of Money Index Put.

Rough guess would be a strike at around 5500 but of course you will need a strategy tool to fine tune parameters.

XJO Puts are not exercised/assigned, if the position goes you way it's either cash settled at expiry or closed out prior expiry.

I think SPI Futures options are American style but you may have to confirm for yourself.