Powdahound
74027860
:
can you tell us what you know about the decay. it does not pay a divident so there should not bs any nav erosion. How does the decay work?
74027860
Powdahound
:
Just math right? The rate of change on the etf is always double of the stock. Take any number, say 100, increase it 10% then decrease it 10%, do it a few times, then do it again increase and decrease by 20%. The value of the 20% is going to drop more. Not sure the underlying stock was at when the etf was $13, but even if tsla goes back to that level, the 2x will likely be less than 13.
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