When looking at the options on the 3X Direxion funds structured products (e.g FAS, TNA, etc.), I notice that the percentage change is often comparable to that of the options on the corresponding unleveraged underlying markets (XLF, IWM, etc.). Is that just a fluke, or is that to be expected? I would think the percentage change of the options on the 3X funds would be 3 times that of the options on the unlevered funds. What has been your experience with the performance of the Direxion options relative to those on the underlying markets? Thanks friends.
i've looked at leveraged etf options in the past, and they're always been fairly expensive, with wide spreads. I'd stay away from these, long or short.