I Do This Instead of Options on Leveraged ETFs, and an Idea for 116% Overnight ROI

Targeting an overnight return of 116%

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I Do This Instead of Options on Leveraged ETFs, and an Idea for 116% Overnight ROI  Hey, Graham Lindman here… My brand-new Newton indicator earlier this week showed momentum in the Nasdaq 100 (QQQ) was shifting from green to yellow, which means watch out for a downturn.  So today, I thought I’d touch on how to trade this kind of momentum shift — and offer a free trade idea at the end!  In the roller-coaster world of trading, where high stakes often lead to high rewards, leveraged ETFs like SQQQ — which should rise when the QQQ falls and vice versa, but rise and fall three times as much — often promise the moon but deliver less than stellar results.  From my experience, these funds can be a trap for unwary investors. They claim to offer amplified returns, but often, they don't perform as expected — particularly SQQQ, which I find underwhelming on both ends of the market spectrum. Leveraged ETFs are designed to deliver multiples of the daily performance of the indexes they track. In theory, a 3x leveraged ETF should provide three times the daily return of its underlying index.  However, in practice, this isn't always the case...  These funds tend to underperform significantly during market rallies and drop even more precipitously during declines. This asymmetric performance makes them particularly risky for unwary traders. For example, take the TQQQ, the 3x leveraged counterpart of the QQQ index. Over the last four to five years, while QQQ, the ETF that tracks the Nasdaq 100, has reached multiple all-time highs, TQQQ has struggled to meet these benchmarks.  This disparity in performance underscores the inherent risks and volatility associated with leveraged ETFs. For traders who like to play the market's ups and downs, a more effective strategy for my money is to use these ETFs contrarily. When you expect the market to tumble, consider shorting TQQQ instead of going long on SQQQ.  Conversely, when you expect a rally, shorting SQQQ could be more profitable than betting on its rise.  The reason? These ETFs tend to fall faster than they rise, despite supposedly offering symmetrical leverage. In reality, the leverage effect often feels skewed — more like 2.8 times on the upside and like 3.5 times on the downside, in my experience.  This discrepancy can lead to unexpected losses if one is not careful. Ultimately, while leveraged ETFs like SQQQ and TQQQ can be tempting for their high-return promise, they require a cautious approach. The key to trading them successfully is understanding their unique behavior under different market conditions and not getting caught by surprise when they fail to perform as advertised.  As always in trading, protecting your capital is as important as growing it, and knowing when to enter and exit these positions is crucial. Now, about growing some capital… Thursday Trade Idea With the market softening, I’m looking to trade the Russell 2000 (IWM) to the downside for the overnight move.    • Sell 215 call. • Buy 216 call. • Net credit 0.53. This will result in a 112% overnight ROI IF IWM falls 50 cents overnight. That’s all for today! P.S. Have a question or something you’d like me to cover in a future newsletter or event? Just reply to this email! _______________________________________________ Don’t Miss Jack Carter’s Top 10 Trade Ideas for the Month   With the recent $140 billion Chinese stimulus boosting various sectors and stocks… The Fed rate cuts freeing up more money… A new slate of earnings lifting sentiment and opening up opportunities…  And Wall Street tossing money around like crazy before this heated presidential election… October could be the BEST trading month of 2024! So trading veteran Jack Carter is sharing TEN of his top trade ideas with you LIVE at 1 p.m. ET TODAY, Oct. 3! And as a special bonus, market genius Chris Pulver is revealing his China stocks watchlist to you after Beijing’s HUGE stimulus boom. We can’t promise results or against losses, but I can promise this is a LIVE, FREE briefing you don’t want to miss!   Head on Over Here Now! Graham Lindman Graham Lindman Trading Follow along and join the conversation for real-time analysis, trade ideas, market insights and more! Telegram: https://t.me/+abM5RWRJKrpkNWI5 Also check out my website at: https://grahamlindman.com/!  *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. Disclaimer: The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. _______________________________________________

I Do This Instead of Options on Leveraged ETFs, and an Idea for 116% Overnight ROI   Hey, Graham Lindman here…   My brand-new Newton indicator earlier this week showed momentum in the Nasdaq 100 (QQQ) was shifting from green to yellow, which means watch out for a downturn.    So today, I thought I’d touch on how to trade this kind of momentum shift — and offer a free trade idea at the end!    In the roller-coaster world of trading, where high stakes often lead to high rewards, leveraged ETFs like SQQQ — which should rise when the QQQ falls and vice versa, but rise and fall three times as much — often promise the moon but deliver less than stellar results.    From my experience, these funds can be a trap for unwary investors. They claim to offer amplified returns, but often, they don't perform as expected — particularly SQQQ, which I find underwhelming on both ends of the market spectrum.   Leveraged ETFs are designed to deliver multiples of the daily performance of the indexes they track. In theory, a 3x leveraged ETF should provide three times the daily return of its underlying index.    However, in practice, this isn't always the case...    These funds tend to underperform significantly during market rallies and drop even more precipitously during declines. This asymmetric performance makes them particularly risky for unwary traders.   For example, take the TQQQ, the 3x leveraged counterpart of the QQQ index. Over the last four to five years, while QQQ, the ETF that tracks the Nasdaq 100, has reached multiple all-time highs, TQQQ has struggled to meet these benchmarks.    This disparity in performance underscores the inherent risks and volatility associated with leveraged ETFs.   For traders who like to play the market's ups and downs, a more effective strategy for my money is to use these ETFs contrarily. When you expect the market to tumble, consider shorting TQQQ instead of going long on SQQQ.    Conversely, when you expect a rally, shorting SQQQ could be more profitable than betting on its rise.    The reason? These ETFs tend to fall faster than they rise, despite supposedly offering symmetrical leverage.   In reality, the leverage effect often feels skewed — more like 2.8 times on the upside and like 3.5 times on the downside, in my experience.    This discrepancy can lead to unexpected losses if one is not careful.   Ultimately, while leveraged ETFs like SQQQ and TQQQ can be tempting for their high-return promise, they require a cautious approach. The key to trading them successfully is understanding their unique behavior under different market conditions and not getting caught by surprise when they fail to perform as advertised.    As always in trading, protecting your capital is as important as growing it, and knowing when to enter and exit these positions is crucial.   Now, about growing some capital…   Thursday Trade Idea   With the market softening, I’m looking to trade the Russell 2000 (IWM) to the downside for the overnight move.    Sell 215 call. Buy 216 call. Net credit 0.53. This will result in a 112% overnight ROI IF IWM falls 50 cents overnight. That’s all for today!   P.S. Have a question or something you’d like me to cover in a future newsletter or event? Just reply to this email! _______________________________________________ Don’t Miss Jack Carter’s Top 10 Trade Ideas for the Month    With the recent $140 billion Chinese stimulus boosting various sectors and stocks…   The Fed rate cuts freeing up more money…   A new slate of earnings lifting sentiment and opening up opportunities…    And Wall Street tossing money around like crazy before this heated presidential election…   October could be the BEST trading month of 2024!   So trading veteran Jack Carter is sharing TEN of his top trade ideas with you LIVE at 1 p.m. ET TODAY, Oct. 3!   And as a special bonus, market genius Chris Pulver is revealing his China stocks watchlist to you after Beijing’s HUGE stimulus boom.   We can’t promise results or against losses, but I can promise this is a LIVE, FREE briefing you don’t want to miss!   Head on Over Here Now! Graham Lindman Graham Lindman Trading   Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!   Telegram: https://t.me/+abM5RWRJKrpkNWI5   Also check out my website at: https://grahamlindman.com/!    *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.   Disclaimer:   The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.    Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.    Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.    Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. _______________________________________________

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to phanxuanhoa60.trade1357@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day.   DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.   DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/?mobile=1 for our full Terms and Conditions.   Unsubscribe This email was sent to phanxuanhoa60.trade1357@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub