Volatility Decay

$Defiance Daily Target 2X Long MSTR ETF (MSTX.US)$

Bitcoin recently has been on a tear climbing higher and higher almost every day after the elections. Many traders aren’t aware of how daily price changes can have a profound effect on leveraged Etfs and their long term performance.

Until last Thursday, we have been having more frequent up than down days. Also large Up days vs large Down days were more than 2:1 ratio. i suspect this is going to change which will negatively impact this Etf, making it very difficult for this product to achieve new highs any time soon. So be careful out there..

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Daily Investors : just lost 500 on mstu the past two days

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iloveoptions

Quantitative trader building Volatility algorithms to generate alpha with reduced risk using the option greeks.

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