Bull market rebirth of investors, love me again (after reading this, profits surge by 3000%!)

I started preparing this content since September 28th, after holding it 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 potential of leveraged ETFs

4. When and who should buy leveraged ETFs

5. Extreme profit amplification strategy - options

6. The operation principle of options

7. Profitability analysis of leveraged ETF options

8. When and who should buy options

9. Strategies for dealing with sudden market reversals

10. Risk Disclosure (Special Note, please read carefully!)

Firstly, look at its candlestick chart, the value can have explosive growth in the short term, such as during the bull market in 2015, the rebound in 2017, and the current rebound in 2024.Achieve a doubling or even multiple growth in value in a short period of time.
However,In the long term,I believe that, if I were to describe it in one word, it would be value destruction. As for what leads to it,Value destruction.I will discuss the issue of leverage losses in detail in the following risk section.
In summary, leveraged ETFs are very suitable tools for achieving huge profits in clearly one-way trends, 3x leverage, quite exciting!

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

2. Suitable for short-term investors:Suitable for investors with some ability to determine the market, good at seizing opportunities, and YINN's short-term fluctuations are tools to amplify returns.

3. Individuals with a high risk preference:For investors who like high risk and high returns, in the case of clear market opportunities, leveraging ETFs can be considered as a speculative allocation.

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

Take a risk and a bicycle can become a motorcycle! Take a gamble, the motorcycle becomes a Land Rover!

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

The answer is yes! So leveraged ETF as an asset target, As an instrument for risk management, options also have leverage, which can help individuals hedge positions, achieve large profits with small investment, and enhance potential returns. Options are one of the tools for pursuing excess returns in the short term.

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

We know that the basic characteristic of options is to invest small and gain large profits. The total value of options can be represented as:Option value = intrinsic value + time value.

We know that intrinsic value is directly related to direction, while time value is closely related to time, volatility, etc., but I won't go into details here. Remember this mnemonic:"Expect a significant rise to buy calls, expect a significant fall to buy puts, not expecting a rise to sell calls, not expecting a fall to sell puts." "Significant rise, significant fall"Already includes time value. In a market with low volatility, the loss of option value will be significant, and time value will constantly decay. Therefore, it is only by clearly buying call or put options in the market that excess returns can be generated.

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

Taking the contract of January 17, 25 as an example, compared to the asset code YINN, you will know that profit is not a dream. First, let's look at its statistics. YINN has a price increase of 189% in 20 trading days, while the price increase of YINN's call options in 20 trading days is 3665%! It is not just a few times, but 36 times! And buying call options of YINN in the early stages of the rally is cheaper than directly buying leveraged ETFs.

The timing is right: For the buyer of options, most trades are profitable in terms of direction, but losses are likely to occur in terms of time. This indicates the need for accurate directional judgment, 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.But also pay attention to the implied volatility of options, if the implied volatility is too high, it is not suitable to be a buyer because once the implied volatility reverses, the value of your option will quickly decrease.

Suitable for short-term investors: For those with certain market judgment abilities, Investors who are good at seizing short-term opportunities.In terms of options, it is a tool to achieve excess returns.
High risk preference: Investors with a preference for high risk and high returns, in clear market opportunities, can consider speculative allocation of options with leveraged ETFs as the underlying asset.

Investors with strong hedging ability:If you have strict stop-loss discipline, can control risks, options can become an accelerator for you to enter the market.

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

1. The leverage etf leverage loss risk:Leverage loss risk is a major risk faced by all leveraged funds.I have emphasized several times before, that funds only aim to triple the daily index returns, not long-term returns. It can also be seen from the income chart that long-term returns are not tripled.

2. Options risk:The option buyer may lose all the option premium paid.If the option is out of the money at expiration (for call options, the underlying asset price is below the exercise price; for put options, the underlying asset price is above the exercise price), the option will not be exercised, and the option premium paid by the buyer becomes zero. Even if the market trend is correctly judged, if the profit point is not sufficiently reached before expiration, time decay can also lead to the loss of the option premium.