$T-REX 2X Inverse MSTR Daily Target ETF(MSTZ.US) $Pro Ultrshrt GLD(GLL.US) $Direxion Daily Gold Miners Bear 2X(DUST.US)
A few 2x short ETFs:
The IV of MSTR remains high. The MSTR option chain data shows the market is hedging against the risk of BTC weakness, but Bitcoin is currently oscillating at high levels. Shorting MSTR carries huge gamma exposure—MSTZ is like flying against the wind.
The gold side is even more dangerous: Gold prices were around $4700/ounce in early April, and institutions like JP Morgan have target prices pointing above $5000. The put/call ratios for GLL and DUST show almost no smart money is long these short instruments.
In a strong trend, the daily compounding decay of inverse ETFs is "death by a thousand cuts." Don't think holding and waiting for a reversal is cost-free 🙈
If you really want to hedge against gold or crypto risks, short-term put spreads would be more precise than directly holding these short ETFs.
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