Intermediate Level Trade: DXD

The Trade: buy 1 DXD April $17 call and sell 1 DXD April $22 call for a debit of 1.15 points.

What the ProShares UltraShort Dow 30 ETF (DXD) attempts to do each day is move in price/value inversely to the same movement of the Dow Jones Industrials (or Dow 30), but that inverse price movement is 2x. DXD is a very liquid trading vehicle, especially for options traders. Most times, it has tight bid/ask options, which allows options traders many advantages in that they can quickly capture targeted gains or cut predetermined losses....286 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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