The "JJJ" trade explained: 19% gain.

When we put on the "JJJ" trade, we noticed that THE SPREAD between the S&P500 (large cap stocks) and The Russell 2000 Index (small cap stocks) was considerably wide. The small cap stocks were trading at huge premiums compared to their large cap brethren. We were betting that gap would close given the uncertainty in the markets. Our computers were indicating a 75% probability of success. We were betting the Russell 2000 would go down to a more equal parity. We decided to play a stock that gave us 3X's down leverage on the Russell 2000. The stock was TZA. For every 1% the Russell 2000 went DOWN, we would be UP 3%. We decided on a 25% capital commitment. We bought at 6.45 yesterday and sold at 7.65 this morning. It was a nice 19% gain in 24 hours.