How Inverse And Leveraged ETFs Actually Work

Published: April 16, 2015, 6 a.m.

In the past couple years inverse and leveraged ETFs have been some of the most highly traded securities because of their seemingly "cool" concept for speculation. I mean where else can you get such high exposure to financials or gold than with a 3X bull/bear ETF?

In this session of The Option Alpha Podcast I'll going to dig deep into how these products are both structured and priced so that you have a complete and full understanding of the "drag" they carry before investing.

No this is not to say that you shouldn't trade inverse and leveraged ETFs because I have before and will in the future. Instead, my goal is to make you smarter about how they derive their pricing so that your timeline for trading them might be adjusted or altered.

I never promised this podcast would be a walk in the park, so if you are ready to be challenged and take your training to the next level then let's get started.