Stock investors' rebirth in the bull market, love me again (after reading this, profits surged by 3000%!)

I started preparing this content since September 28th, after holding it in for so long, I finally finished writing it. Welcome everyone to communicate and exchange ideas together!

1. Introduction to YINN leveraged ETF

2. Operating Principles

3. Analysis of the profit capabilities of leveraged ETFs

When and who should buy leveraged etfs.

Extreme profit amplification strategy - options.

How options operate.

Analysis of the profit capabilities of leveraged etf options.

When and who should buy options.

Strategies to deal with sudden market reversals.

Risk disclosure (Special note, please read carefully!)

First, let's take a look at its candlestick chart, the value can have explosive growth in the short term, for example, during the bull market in 2015, the rebound in 2017, and the current rebound in 2024.Achieving growth of double or even multiple times in a short period.
However,In the long term,I think, if I were to describe it in one word, it would be value destruction. As for what would lead to it,Value destruction.I will specifically discuss this leverage loss issue in the following risk section.
In summary, leveraged ETFs are very suitable tools to achieve huge profits in clear one-way trends, 3 times leverage, quite exciting!

1. The timing is right: YINN is more suitable for short-term bullish investors in the Chinese stock market, especially in markets with obvious bull trends or strong rebounds. Due to the leverage effect of YINN, it can help investors quickly achieve excess returns during significant market increases.

2. Suitable for short-term investors:Suitable for investors with a certain judgment of the market, good at seizing opportunities. In the short term, YINN's volatility is a tool to amplify profits.

3. Individual with a high risk preference:For investors who like high risk and high returns, when market opportunities are clear, leveraging ETFs can be considered as a speculative allocation.

4. Investors with strong hedging capabilities:If you have strict stop-loss discipline and can control risks, leveraged ETFs can be an accelerator for your market entry.

Take a risk, a bicycle can turn into a motorcycle! Take a gamble, a motorcycle can turn into a Land Rover!

If you are an investor who likes high risk and high returns, and have a strong confidence in the trend of the Chinese stock market, YINN can turn your bicycle into a motorcycle. So is there a way to turn a motorcycle into a Land Rover?

The answer is yes! So leveraged ETFs as assets are the target.Options, as a risk management tool, also have leverage and can help individuals hedge positions with small investments to achieve large profits and enhance potential returns. Options are one of the tools for seeking excess returns in the short term.

The principle is very simple,Leverage + leverage = excess profits.

We know that the basic characteristic of options is to invest a small amount and receive high returns. The total value of options can be represented as:Options value = intrinsic value + time value.

We know that intrinsic value is directly related to the direction, while time value is closely related to time, volatility, and so on. I won't go into details here. Remember this mnemonic: "Expect a significant increase, buy calls; expect a significant decrease, buy puts; not expecting an increase, sell calls; not expecting a decrease, sell puts" "Significant increase, significant decrease"Already includes time value. In a market with low volatility, the loss of option value will be significant, while time value continuously diminishes. Therefore, only by clearly buying call or put options in the market can excess profits be generated.

Therefore, when we are extremely bullish on a particular asset, or in a market where the trend is particularly clear, we can not only amplify returns through leveraged etfs, but also achieve ideal excess returns by using options with leveraged etfs as the underlying asset!

Taking the contract on January 17, 25 years as an example, comparing it with the asset code YINN, you will know that profit is not a dream. First, let's look at its statistics. YINN's price increase over 20 trading days is 189%, while the price increase of YINN's call options over 20 trading days is 3665%! Not just a few times, but 36 times! Moreover, buying YINN call options in the early stages of an uptrend is cheaper than buying leveraged etfs directly.

Timing is right:For the buyer of options, most trades are profitable in terms of direction, but it is easy to incur losses in terms of time. This indicates the need for accurate directional determination, or the market direction is already very clear. Therefore,Buyers are more suitable for markets with strong directionality, large magnitude, fast changes, and high volatility.However, attention should also be paid tothe implied volatility of options.If the implied volatility is too high, it is not suitable to be a buyer, because once the implied volatility turns, the value of your options will quickly decline.

Suitable for short-term investors:For those with certain market judgment abilities,Investors who are good at seizing short-term opportunities.For investors, options are a tool to gain excess returns.
High Risk Preference: Investors with a preference for high risk and high returns, in clear market opportunities, can consider using leveraged etfs as the underlying asset for speculative options trading.

Investors with strong hedging capabilities:If you have strict stop-loss discipline and can control risks, options can become an accelerator for your market entry.

When you hold a large amount of stocks, you can use inverse ETFs to hedge the risk of an overall market decline. Active traders use leveraged inverse ETF options for short-term market speculation, attempting to profit from market downturns.

1. Risk of Leveraged ETF Loss: Risk of loss is a major risk faced by all leveraged funds. I have emphasized it several times before, that funds only pursue triple daily index returns, not long-term returns. It can also be seen from the profit chart that long-term returns do not triple.

2. Options Risk: The option premium paid by the options buyer may be completely lost. If the option is out-of-the-money at expiration (for call options, the underlying asset price is lower than the strike price; for put options, the underlying asset price is higher than the strike price), the option will not be exercised, and the option premium paid by the buyer becomes zero. Even if the market trend judgment is correct, if it does not reach the profit point sufficiently before expiration, time decay will also lead to a loss of option premium.