Leveraged Biotech?

Discussion in 'ETFs' started by Cuddles, Mar 5, 2017.

  1. Cuddles

    Cuddles

    I've been sitting on some mutual fund and ibb and xbi etf's. I still think there's room for growth at the current price. Anyone doing leveraged plays? Recommendations?
     
  2. ET180

    ET180

    I don't recommend any leveraged ETF as a long-term investment. The leverage does not come free and they are only designed to be leveraged on a daily basis. If you want more exposure, just buy more.
     
    Mark Lapin likes this.
  3. VRX - bottomless pit of agony that might be a 2-3x bagger or headed to bankruptcy
    GILD - solid pharma with 10%+ potential to the upside
     
  4. I agree. Leveraged ETFs for the individual investor spell disaster in the long term based on they are structured. If they go against you, it takes more of a %-gain to make them go back up how much they went down.
     
  5. truetype

    truetype

    OK, but this is true of any security.
     
  6. obolon_

    obolon_

    My aggressive portfolio:

    Alliqua BioMedical Inc (ALQA.US)
    Aurinia Pharmaceuticals Inc (AUPH.US)
    Navidea Biopharmaceuticals Inc (NAVB.US)
    Karyopharm Therapeutics Inc (KPTI.US)

    I'm going to buy these stocks after correction. Portfolio chart:

    [​IMG]
     
  7. %%
    You illustrated my thoughts Obo,; is that a $40 to $ 63/+ daily gap?????? Anyway it cut$ both way- that is a wild sector from way back.

    LABU was good short[downtrend] from >>$200 down to to $20, dont know if its split adjusted ; hope this helped, it helped me.....................................................................
     
  8. Yes true for any security, but for leveraged ETF's, especially 3x leveraged ones you are going to run into some MAJOR trouble
     
    murray t turtle likes this.
  9. truetype

    truetype

    Same for any other security with the same volatility, for instance low-cap biotechs or junior gold miners. There's nothing magical about levered ETFs.