OILU. 3x crude oil ETF. It dropped so much since January. From $24.29 to $0.217. (Or is this because it's only holding is a futures contract that expires in April?) So when things get back to normal, even if it only goes up to $21, that's a 100x increase. It might take 12 months to get there. Only problem, I can't tell if the decrease in price is because of the futures contract it holds? Or will it buy new contracts when the April one expires?
OILU is shut down, you cannot trade it anymore. And no, it would've not be possible for OILU to get back $21. Learn about stuff you want to trade.
Remember risk reward probability. When the reward is big and the risk is low, the probability is low as well. Dont assume the pro boys are stupid, giving you a 100x trade
Not possible for UWT to recover even if crude goes to $100. Learn how 3x leveraged ETFs work or you'll have your ass handed to you. You're making ridiculous assumptions.
The probability of the economy returning to normal given enough time is practically 100%. Key words... "given enough time." When things are falling like now, it could be an advantage for those willing to wait a long time to see returns.
Just spend at least a few hours researching something you want to trade. Find any time in history when any of 3x ETFs recovered from $0.20 to $20+. Then you'll find more info along the way. Or just start loading up on those, it will be fun to watch.
Yes I know you're not "supposed" to hold them for more than a day. I bought TMF back in September at about 33. I decided to sell it in December at about 27. Then after, it rose as high as 51. It's now at about 45.5. I read about them before I bought them in September. But then I read other people's opinions saying they didn't mind holding them longer-term.
I bought OILU lottery tickets as well but looking for it to get back to $5 to $10 range IF....big IF it survives this oil drop and oil can reverse in next quarter.. but it is a lottery ticket .....not a real investment