T-Rex 2x Inverse Master Ltd. ETF (MSTZ)

Overview

The fund is a financial investment entity that primarily focuses on leveraging the market performance of Netflix (NFLX). It aims at providing its investors with 200% daily exposure to NFLX through a combination of swap agreements, which are its main investment vehicles. These agreements account for at least 80% of the fund's net assets, including any borrowings undertaken for investment purposes. Uniquely positioned to capitalize on the performance of NFLX, the fund operates with a non-diversified investment strategy. This strategy potentially offers high rewards due to its leveraged exposure but also entails a higher risk compared to diversified funds.

Products and Services

• Swap Agreements

  These are the primary tools the fund uses to gain 200% daily exposure to NFLX. Swap agreements are derivative contracts through which two parties exchange financial instruments or cash flows based on the performance of NFLX. This allows the fund to amplify its exposure to the stock without directly owning it.

• Call Options on NFLX

  The fund may also purchase call options on Netflix. A call option is a financial contract that gives the holder the right but not the obligation to buy a stock at a predetermined price within a specific timeframe. This strategy can provide leveraged exposure to NFLX with potentially lower capital investment compared to owning the stock outright.

• Direct Investment in NFLX Stock

  Apart from using derivatives, the fund has the option to invest directly in the common stock of Netflix. This more traditional method of investment allows the fund to participate directly in the appreciation of NFLX stock, although it may present less leverage compared to swap agreements and options.