Hold on a sec... I didn't bother looking at the instrument traded LOL X2 leveraged mstr? A crypto XiV? LoL Wow WXY, you should go all in on this one!
Leverage decay. MSTU is a 2X daily reset ETF. Example: You have $100 = 100 You lose 20% tomorrow = 80 You win 20% the next day = 96 (80 X 20% = 16) A 25% gain is needed (80 + 25%) = break even the next day. Compounded negative days eat your bottom line. If you are convinced MSTR is going to go up, buy MSTU. When it's not, buy the stock and use options to mitigate. 1. MSTR stock is down 48% from its high, three months ago = buying opportunities? 2. MSTU ETF is down 83% from its high, three months ago = game of chicken! MSTU is a short term vehicle that manages (MSTR) options (for you) while taking profits (from you). MSTU can go to zero.
It works both ways. On up days we x2. Either way this will be back up to $12 on the rebound. If not I got my premium...definitely not giving it back or selling for a loss.