T-Rex 2X Long Master Date ETF (MSTU)
BATS BATS Primary Summary
MSTU Chart
MSTU Down 95% in a Year, How a 2x Daily Fund Lost Nearly Everything While Its Underlying Fell 67%
A $10,000 stake in the T-REX 2X Long MSTR Daily Target ETF (NASDAQ:MSTU) bought at Thursday's close was worth about $8,633 at Friday's bell, a roughly 14% single-session drawdown from $3.95 to $3.41.
Leverage Decay Forced MSTU's 91% Plunge
If you own MSTU, you're making a specific bet: that MicroStrategy's Bitcoin holdings will move sharply higher in the near term, and that daily compounding will work in your favor.
MSTU Adds An Extra Layer Of Risk On Top Of A Leveraged Bitcoin Strategy
MSTU offers 2x daily the daily performance of MSTR via options, introducing an additional layer of risk on top of a leveraged bitcoin strategy. The ETF's performance is highly sensitive to volatility and bitcoin price swings, amplifying both upside and downside moves. Holding MSTU beyond a single day can lead to substantial gains or losses due to compounding effects and value decay, especially in flat or choppy markets.
T-Rex 2X Long Master Date ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| SE Sima Elimelech Activest Wealth Management | 1,109 | $9,215.79 | $3,681.88 | -$5,533.91 | -60.05% |
| MA Marie-Andree Alain Federation des caisses Desjardins du Quebec | 73 | $607 | $242.36 | -$364.64 | -60.07% |
T-Rex 2X Long Master Date ETF (MSTU) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
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Has T-Rex 2X Long Master Date ETF ever had a stock split?
T-Rex 2X Long Master Date ETF Profile
| BATS Exchange | US Country |
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.
