Seeking Alpha

Smarty_Pants » Comments » BGZ

  • Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs [View article]
    If you want 3x leverage open a futures account and buy/sell one e-mini S&P 500 for every $15,000 in your acccount.

    Nov 05 16:04 pm |Rating: 0 0 |Link to Comment
  • Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs [View article]
    Dan: Don't get led too far astray by the numbers. The same holds true for unleveraged ETFs.

    If you lose 25% of your money, you have to gain 33% to get back to break even. Lose 50% and you need to gain 100% to break even.

    Same will be true of the leveraged ETFs, just that the swings in each direction will be larger.

    The difficult question is what happens if the underlying loses 35% of its value? Does the 3x ETF go bankrupt? Probably not. It would depend on how they implement their leverage.

    It's probably a good question to ask Direxion though.
    Nov 05 16:00 pm |Rating: +1 0 |Link to Comment
  • Had Enough Volatility Yet? Direxion Set To Launch 3X Leveraged ETFs [View article]
    When do they start trading options on these 3x ETFs?

    Can't have too much leverage if you're right, or if you're a bank and deemed too big to fail.
    Nov 05 15:54 pm |Rating: +1 0 |Link to Comment
More on BGZ by Smarty_Pants
Comments by Ticker
AA, AAPL, ABK, ABT, ABX, ACGY, ACWI, ADE, ADM, ADP, ADRE, AEM, AGG, AGNC, AGQ, AGT, AHBIF.PK, AIG, AKS, AMAT, AMGN, AMSC, AMZN, ANF, APD, APOL, ATI, AU, AVMNF.PK, AVNX, AXP, BA, BAC, BBT, BBY, BCS, BDX, BGU, BGZ, BHI, BID, BIDU, BK, BMY, BNA, BND, BPT, BRID, BRK.A, BRK.B,
Smarty_Pants'
Comments Stats
1277 comments
Rating: 477 (1047 - 570 )