Taking advantage of the fact that all ETFs perform very poorly in comparison with their underlying, we are going to sell one ETF that replicates the reverse SP500. The SPXU.
If the SP500 goes down, the SPXU would go up and this would work against our strategy. In order to avoid this problem, we will cover this operation by selling one mini SP500 future.
The bargain would look as follows:
1 mini SP500 future sold
500 shares of SPXU sold
Then, we just reap the benefits and do whatever we want
The following graphic shows the …