2x Bitcoin Strategy ETF Stock Discussion

Lambert AI : Its dividends payout has minimal impact on its price movements actually ...... coz its mainly related to BTCs movements.

103143732 : Nice dividend but the 30% tax is huge

inventive Iguana_6oh : that's the leverage ETF decay for you.

BFSkinner : It’s trading btc futures-

Lambert AI : It's the scale of ratio issue. BTC's USD 100K goes to USD 80K is a 20% drop, but when it goes back up from USD 80K to USD 100K (same amount within a day), it is a 25% increase. The ratio is linked & not proportional. Good to pick it up when BTC drops to lower range of fluctuation, then your gain will be good when it goes back up. If you pick it up when it's at higher price, when it drops then rebound back to the original price tag, you actually will lose $$. Good luck bro.

Lambert AI OP : Between 92K to 98K (6% range), BTC has a lot of opportunities to range trade. So is BITX (12%+ range)   Flip it three times will give you a 36%+ potential profit.

Lambert AI OP : 🫰 Enjoy & good luck bros

EZ_money : yes, a BTC ETF is a derivative of Bitcoin, which is a derivative of the dollar, which is supposed to be representation of something of value, but without anything backing it up there's no accountability, no value...for either.

EZ_money : they like to create these assets out of thing air, helps them control other assets, ETFs have fees you have to pay into

EZ_money : if the ETFs start losing money they stop paying dividends

10baggerbamm : it's the same way that microstrategy is generating 500 million a day in profits.
BITX generates dividends by trading monthly Bitcoin futures contracts. By law, it must distribute 90% of its profits to avoid taxes, leading to monthly dividend payments. The fund does not invest directly in Bitcoin but seeks to benefit from Bitcoin futures price movements, aiming for 2x daily exposure. The dividends come from the yields generated by these futures contracts and cash equivalents held as collateral or margin requirements. The current dividend yield is around 11.8%, with recent payments of $0.59 per share

Hoot9Eeee : after giving out the dividends, the price of bitx will be adjusted???

A_Kid : Explain. That is not possible unless you've held it for a while. This ETF is meant to be a short-term play. Here's an example: If you bought the stock at $10 and it goes up 10%  in a day, it is now $11. If it goes down 20% after that, it is now $8.8. If it goes up another 10%, you would only be at $9.68. Therefore, even though the stock went up a total of 20% and went down 20%, the stock price is slightly under is original price of which you bought it at. Do you understand?

70826362 OP A_Kid : Bottom line, I paid $50 a share when BTC was trading at all time highs in the low Seventies.  When BTC recovered to the low Seventies, it was only worth around 35 per share.  Microstrategy I see as a much better play, not financial advice.