What Do You Think About This One?
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103869745 wen : How high do you think it will goes
10baggerbamm : it's euphoric when the stock goes up and it's a constant kick in the balls when it falls because the pain seems like it never will stop basically the leveraged ETFs all of them 2x3x4x are like a living hell when the market goes against you.
SpyderCall OP 103869745 wen : I think it will all depend on NVDA's earnings in a couple of days. The entire semiconductor sector will be effected, I think.
SpyderCall OP 10baggerbamm : agreed. leverage is always more risky. Especially if you pick the wrong leveraged ETF. A lot of them have some aspect or degree of time decay from holding overnight.
10baggerbamm SpyderCall OP : that's absolutely not true I've held leverage ETFs some of them over a year... you will never see the decay. almost 20 years if you're in an ETF that even moves up or down one or two percent through the course of a week you'll never see the decay it's absolutely not true you might be able to calculate it if you're some quant but you're never going to notice it just like the half a percent fee to 3/4 of a percent fee maybe even a 1% fee that some of them charge against the net asset value you'll never notice it. I was in bnku I started buying a July of last year. dpst pre split last year, utsl last fall...nugt at 32 last year.. and several others and I'm telling you as a matter of fact you'll never see the decay you'll never notice the decay. what you will notice is the volatility I got put a lot of stock on the Friday that I ran went into Israel ...soxl, and it imploded the following week I mean it went from 41 and 1/4 close straight down to below 31. so you don't notice a decay when it's dumping like that you just see the top holdings falling conversely when it reverses you just see the top holdings going up and leverage ETF marching ahead like a rocket
SpyderCall OP 10baggerbamm : Okay dude.
You might have been holding a good leveraged ETF. But some of them are rigged in a manner that is similar to time decay.
Here is a good link that gives some examples of what I am talking about. All I did was type a few simple keywords in Google, and this popped out. Not much research was required.
etf.com/section...
SpyderCall OP 10baggerbamm : etf.com/section...
10baggerbamm SpyderCall OP : understand all about them and there's a cost because they're using options but I'm telling you you're never going to see it if you are in stocks that never move they stay at a baseline of zero then you will gradually see it over a long period of time you are not going to see it when the basket has up and down days it's impossible the only people that are able to calculate it are going to be the company that issues it when they're calculating nav that's it you're never going to be able to see it you're never going to be able to calculate it you're never going to be able to notice it.
SpyderCall OP 10baggerbamm : I've noticed whole percentage point differences between some leveraged ETFs and their underlying asset on some weeks. Whether that is caused by how the ETF is set up, I am not sure exactly. But a whole percent is noticeable. Especially when it is going against you.
10baggerbamm SpyderCall OP : every closed end fund trades at either a discount par or premium to the net asset value that's just how it is and quite frankly I don't believe somebody can sit and notice one point because you would need to know than that asset value and it's not reported every single day. furthermore you have extended trading hours so the underlying securities are still trading up to 8:00 so there's no way to calculate it I'm sorry I've done this long enough to know that you're not seeing 1% you're not seeing a quarter point it doesn't happen. I have people that tell me oh but there's a decay Factor they've never done it I've got several million dollars in two x and 3X leverage ETFs... not just 100 shares not just five grand so I watch them trade against the holdings which I've got sitting right on my screen the underlying stocks and the ETF and I see when there's a movement in one of the major holdings in the ETF doesn't respond right away there's a lag and it can be bought and then you get a quick little hiccup a quarter point 1/8 of 3/8 that type of thing. well like I said the only way you would actually see a decay is if you were in something that absolutely did not move it stayed the same price every single solitary day and none of them do
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