Time to update my ever-evolving position on Leveraged ETF’s.

I day-trade them literally every day. And they’re truly trader crack. The 2x ones were kind of like a Gateway ETF, pretty much moved on the 3x’s now when possible. But I can’t emphasize enough the word “trade” as opposed to “hold”. Even overnight they’re scary, and I’ve made that mistake. Yes, they shouldn’t exist to begin with, and yes, you need to have real discipline and take a loss when you have to.

And chart them at your own risk beyond intraday. You wouldn’t chart a DEEP call and expect to derive any real meaning, yet you see these charted all the time as if they are regular stocks. They’re not. They have more in common with a Deep put or Deep Call than they do with a stock.

Options remain wide and illiquid and they get in the way of trading the stocks, so staying away for right now.

The rest is here:
Leverage