>chatgpt launched nov 22 2022 and bull run started around early 2023/late 2022># of leveraged etfs don't significantly move away from 450~ during this time until 2025>2025, # of leveraged etfs go surges and now record high at 701/biz/! what, if anything, should I take away from this?
>>61197154Use your noggin
>>61197154That there are more high expense ratio ETFs for retards who can't figure out options
did you ask chat? lmao
>>61197193this. many dont even understand how they work. i have seen people post "you dont have to worry about option decay with the etf"... like it magically holds 2x and 3x the shares...
>>61197402Depending on the ETF's structure, you may not. For options, you can construct a synthetic long position via put call parity (buy a call, sell a put at same expiration and strike) and will pay the risk free rate for it. If the 3x ETF does something similar, there is essentially a -12%/year (3x 4%/year interest) depreciation of your position on top of probably a 5%/year expense ratio, so unless you're making like 19%/year off it you're fucked. Mind you this gets even worse if these ETFs rebalance daily, because then you have the volatility decay from rebalancing a leveraged position, losing even more money.
>>61197457So I should use options if I want to bet 2x on btc on my Roth or coinbase if possible? Next bull run I want to use leverage.
