Direxion Daily Real Estate Bull 3X Shares ETF Stock Discussion

• Salmon Klein : what's going on today? why such a huge drop? no happy with Trump?

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• 10baggerbamm OP Salmon Klein : this is all interest rate related you've got interest rates selling off which means yields are going up and that's bad for everything that is interest rate sensitive so that's housing. even though this is not a housing ETF it's being lumped in with real estate

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• Salmon Klein 10baggerbamm OP : should I sell then? I am 10% down...my entry is 12.7

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• 10baggerbamm OP Salmon Klein : that's in drn? need to find how many shares do you have can you sell a covered call against the position

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• Mint candy : I have been reading your opinions about DRN, so I would like to ask if I can still hold on it?

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• 10baggerbamm OP : do you own it outright or do you have options that you're holding? if you bought call options the concern that I have is right now money is not buying the real estate sector it had a large move leading up to the first rate hike it was up like 15% for the quarter and this is a leveraged ETF so it had a significantly greater return. so if you're an options right now you've got money coming out of real estate and you have time gradually decaying on the option contracts.

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• 10baggerbamm OP Mint candy : pt 2

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• Mint candy 10baggerbamm OP : Thanks for the quick reply. Your guidance is always great. I will continue to follow you. I opened a position in DRN last month and will continue to hold it according to your advice. Thanks again

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• 10baggerbamm OP Mint candy : I'm literally looking at doing another option position going out to March of next year selling a deep in the money put and then using that premium to go out and buy a call so that my net cash outlay is not that much. I think there's Market risk right now again with what's going on Israel I ran there's going to be a retaliation there's going to be a market sell off we have risk of inflation with the Port strike this all falls into the market climbs a wall of worry.

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• Warren Buffed : This benefits from rate cut right? Cheaper loans?

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• 10baggerbamm OP Warren Buffed : it's not a matter of cheaper loans it's the real estate industry is the last man on the battlefield that has not rallied two multi-year highs or New Year highs.. the real estate industry has been kicked at a curb thrown out the baby with the bathwater pick a saying and it all commenced when interest rates started to rise several years ago. when you compound rising interest rates with covid where everybody left office buildings were they sat vacant where the Dynamics of working from home changed the need for these large corporations to rent commercial properties all of these stocks as a result were taken out behind the barn and beaten like a redheaded stepchild. fast forward several years many of these companies in this real estate investment trust owned the properties that are being used for data centers oh my God that's amazing that's what everybody wants is real estate that's prime real estate because that's where the future is. the balance of properties are in key cities that are the best cities in the country where real estate is highly sought after where properties are 95% leased and new leases are setting all-time highs again. so absolutely when interest rates fall people will look to invest in real estate because the ability for these properties to be refinanced is much easier number one number two they pay dividends and when these companies start generating profits again and huge profits they will generate they will spin off those profits in the form of much higher dividends so they will raise the dividends going forward and money chases yield in a declining rate economy so you have all of these factors of why this basket is going to go significantly higher

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• Warren Buffed 10baggerbamm OP : Whoa, very detailed analysis, need time to digest

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• 10baggerbamm OP Warren Buffed : okay how about this

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• Warren Buffed 10baggerbamm OP : Ahhh thats it

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• 10baggerbamm OP : another point of fact that is really never talked about has to deal with the fact that most real estate investment trusts by design kickoff a high dividend to their shareholders. and this obviously is done to minimize tax liability. what has happened with most real estate investment trust over the past several years especially since covid is they've cut their dividend significantly or eliminated it many of them have. now that there's a normalization taking place where companies are requiring people to come back to work in an office environment number one number two many of these properties are being repurposed and turned into other uses they're turned into Data centers things of that nature so the low rental rate of some of these properties are now fully rented or approaching 95% which is very profitable so where I'm going with this long twisted convoluted explanation

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• Turnbuckle : T Y

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• 10baggerbamm OP Turnbuckle : this is where it's going you see that white line I'm banking on it and once it comes close to this it's going to be much much higher but this is the minimum that I see in 2025.

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