$XL2CSOPHYNIX(07709.HK) My understanding of the decay in this leveraged long instrument is mainly due to the multiplier effect. For example, if the underlying stock rises 10% and then falls 10%, the underlying's return is (1+10%)×(1-10%)=0.99, a 1% loss. For a 2x leveraged instrument, it's (1+20%)×(1-20%)=0.96, a 4% loss. This stock maintained a rhythm of a big up day immediately followed by a big down day from late February to early April, causing the underlying to hit new highs while this is still 20% away from its peak.

What other factors do you think cause decay? 🤣