What are the dangers when an ETF goes from 2X Leverage to 1.5X?

I would think only long-term option holders get hit. True?

 

No dangers...

I heard there are a handful of 3x etfs going to 2x etfs

 

That happened only with UVXY (2 years ago)?

In this scenario investors of the shares are not hit, only option buyers are....

 

Yeah, around 10 from Direxion (a.o. the 4 famous gold miners and the 4 oil producers ETFs) go to 200% in May, around 10 others are stopped...

 

So, option holders get hit on those? Or if they sell beforehand, it's not a problem?

 

For options < may20 nothing changes. For options > may20 something changes (buyers could argue that they paid too much premium).

However, the next round of destruction of the 3x ETFs (especially gold miners and oil exploration) will, with the current volatility, probably happen before may20 so in that case time value is no issue at all...