A strategy involving leveraged ETFs to boost yields is nothing new. I am aware of certain risks inherent to leveraged & inverse ETFs, specifically capital erosion occuring in regards to volatility in the the underlying pver long(er) time horizons.
This is compounded by the drag on returns from high transaction costs & tax considerations. I plan on using the $MJXL and $MJIN ETFs, but I have a few questions concerning the best approach.
I plan on using 50/200 WMA & RSI to confirm bullish trends, and then swing trade utilizing the 2x leverage offered by $MJXL, while simultaneously buying Puts on $MJIN.
My main question is in regards to whether I should go long by holding shares or Calls and what is the optimal timeframe to hold contracts? 90-120 DTE upon trend confirmation?
Submitted March 05, 2022 at 07:39PM by BlackSilkEy https://ift.tt/7fMp3lu
