Loading ...Hi Richard, What do you think about this move by Direxion?
I guess the recent 3x to 2x reduction in multiplier (just as PM rebounds) wasn’t enough punishment. Now Direxion wants to kick shareholders in the teeth as well.
IMO this is going to hurt anyone that held their shares during this beatdown. If my math isn’t wrong, the new shares will cost 25x as much; and psychologically it just seems easier to play with shares in the $10-50 range than playing with shares in the $250 – $1250 range. Not to mention – forget options at $25,000 – $125,000/contract.
I know, I know….. these products are NOT supposed to be held long term.
BUT, check a chart of TQQQ vs QQQ – if one bought TQQQ (or UDOW) – no problem holding and profiting.