Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Durkin Tactical Franklin Armory
User Panel

Site Notices
11/2/2022 4:30:06 PM
Posted: 6/13/2022 8:26:22 AM EST
[Last Edit: JamPo]
On 3x leveraged etf on the s&p. Is it as simple 3x%. An example would be, as of now the s&p is 3900. Let’s say it drops 20% to 3120. The leveraged etf is trading at 38.37. Do I subtract 60% from the current price?

S&P 3900 - 20% = 3120
ETF 38.73 - 60% = 15.49

Right or wrong? Correct calculation appreciated.

ETA: Yes..it checks out against todays drop.
Link Posted: 6/13/2022 8:35:53 PM EST
Link Posted: 6/14/2022 12:17:25 PM EST
Link Posted: 6/16/2022 8:34:16 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By LuckyDucky:

The 3x etfs reset the leverage daily.

As a result, longer-term gains can be greater than 3x and longer-term losses can be less than 3x.

However, whipsaws are worse.
View Quote

Can you elaborate on the whipsaw's being worse?
Link Posted: 6/17/2022 12:09:07 AM EST
Link Posted: 6/18/2022 3:59:51 PM EST
They are good for day trading
Link Posted: 6/19/2022 5:09:19 AM EST
Got it. So good for a day trade but bad for a hold in volatile markets like now, even if you believe in an overall direction?
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.

By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top