Is Shorting leveraged negative ETFs like SOXS an infinite money glitch? What am I missing here?
>>62227784Go ahead, as long as a bubble doesn't pop or anything you'll be fine
>>62227784>$8 downside>ass-gaping rip-roaring sexual assault upside>twitchy marketmax leverage
November SOXS $12 calls are just $278. That's a pretty good deal if you just want an asymmetric contrarian gamble
>>62228227 What makes them a good deal? They are priced exactly what the MM algos believe they are worth. Not a good deal or a bad deal based on current information and demand. Just because something is cheap doesn't mean it is asymmetric. Definitely contrarian though.
>>62228245its a good deal because it only costs about $1.45 per day to hold this contract that could potentially benefit from insane IV
>>62228307>>62228307If the underlyings keep going up 1-5% a day and crash to 0 in september SoXS wont even be worth $5 lol
>>62228312Yeah this bet would be the equivalent of 1 slow-motion pull of the slot machine. And there's nothing wrong with that if it represents like .001 of your total investments. Especially if you're overweight on semis, it's a really good hedge
>>62228361Retard overweight on semis hereExplain to me exactly what I am doing
>>62228365You want me to explain how to setup an options strategy to offset some of your risk?SOXS is an inverse ETF, so when semis pump, SOXS crashes. But if semis crash (burst like a fucking balloon) then SOXS pumps madly.So you need a broker who lets you buy options. Then you go to the options market for the SOXS ticker and use dropdown menus to select the right expiry date & strike price.In my example it's the $12 SOXS Call expiring 11/20/26. "Buy to Open". If semis keep pumping, you forget about this because it's a lost cause. But if semis crash, you "Sell to Close" Theres a BIG difference between a Call and a Put. And there's a big difference between ETFs, inverse ETFs, leveraged ETFs, and inverse leveraged ETF's. You better make sure you know what you're doing
>>62228392I'm familiar with all the concepts, was just asking about strategy. Thanks anon.
It's a high risk strategy that you should fully expect to get heemed on. I was considering throwing some play money into it but so far I don't see any brakes on the semiconductor train so it feels like throwing money away.
>>62227784funding ratesdo you not understand how shorting/ longing works?lmao
