How did SQQQ reach 80k a share?
1. If the downturn continues to gain momentum what could be the potential here, is it rational to consider buying a small position to leverage a continued selloff?
2. Current price is around $45/share - however this stock hit almost 80k a share 10 years ago and close to 500k a share prior to that - what fundamentals caused such a run up?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Mike Hunt : Leveraged ETF’s go through numerous reverse splits especially if they are 3x. In a bull market, a bearish leveraged index otherwise would simply approach zero without ever getting there and option chains don’t work on penny stocks. Think of it this way. Imagine the market went up 30% in a bull market year. That means a leveraged 3x inverse index would need to go down 90% in just that year.
Mike Hunt : The converse thing happens to bullish leveraged 3x indexes in a bear market
Markio1315 : Yes, use this as a temporary measure to hedge your stocks. Or you can sell covered calls. This is not long term, once the down-trending cycle is over best to take profit and closed.
RebornRich : I believe SQQQ is a long term stock to hold as market are more bearish than bullish
Rapz RebornRich : It is dangerous to hold any leveraged product long term, especially SQQQ. The market will always climb back eventually no matter how hard the crash.
Conectz : Those were starting prices and aren’t realistic to get back to as we’d have to basically go in to a worldwide depression. If you look back to the covid crash, it hit about $2100 and if we go into a recession we could possibly see a boost past that to the $2500 or $3000 range.
Kathy kastine OP Conectz : okay
Kathy kastine OP Rapz : I'll be watching for a while
Kathy kastine OP RebornRich : really
Kathy kastine OP Markio1315 : thx
View more comments...