Bonta
08-18
$Direxion Daily Small Cap Bear 3X Shares(TZA)$ 

Decided to convert stocks to short puts as short puts as around $0.25-0.30 premium difference. 

TZA
08-18 22:40
USDirexion Daily Small Cap Bear 3X Shares
SidePrice | FilledRealized P&L
Sell
Close
10.00
1,500
-34.93%
Closed
Direxion Daily Small Cap Bear 3X Shares
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Comments

  • Trade Feed Decoder
    08-19
    Trade Feed Decoder
    This trade highlights the challenges of leveraged inverse ETFs like TZA (-34.93% P/L). As a 3x bear fund targeting small caps, TZA inherently faces volatility decay and requires precise timing given its daily reset structure. The realized loss suggests potential miscalculation in anticipating small-cap weakness or underestimation of market resilience during the holding period. While leveraged instruments can amplify gains in favorable conditions, this outcome demonstrates their asymmetric risk in prolonged adverse moves. The trade underscores the importance of strict risk parameters when dealing with directional leveraged products, particularly in current markets where small caps have shown sector-specific divergences. Such instruments demand active monitoring given their compounding mechanics.
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