There is always just 3 output everyday with around this %: raise 10% sideways 80% drop 10% Short 3x etf would have 90% winning chance Of course you would say borrow cost is crazy high But it is not true for all 3x etf Agree or not?
I think he/she talks about shorting those ETFs, making money from those ETFs losing value. The risk would be to the upside.
I shorted a basket of leveraged ETFs for a while. Short them in pairs so TNA & TZA, NUGT & DUST, etc. so you're always long & short in the same market. In the long-run you'll win. The problem is you need to keep a good amount of spare margin available because occasionally these leveraged ETFs go crazy to the upside. Short @ 10 and suddenly it's 100. Initial investment was 10K and now it's 100K. Yikes! I was profitable with the strategy but with a strong move it can take considerable time to get back to break-even and with the spare margin required I decided it wasn't worth it.
There are people doing this for long time. It is just as selling out of money options. The risk is in the tail event and don't let it blow up your account.
Not really. If you short options with a small portion of your account, the risk is also low. It all depend on how much you want to win, so that how higher the risk you want to tolerate.
%% NO, not really; but on a good downtrending day like WED, today/may be worth your while?? Wisdom is profitable to direct...……………………………………………………………………………………………………... The inverse moves much , much different from long x3 ETF...