Cut Loss: 817
Risk Reward Ratio: 1:6.96
Timeframe: 2 Months
Given tesla meteoric rallying (180% ish from July 2020 to now Jan 22, 2021), the 3LTS ETF manage to bag 2230% in the same time frame.
Of course because it's suppose to triple leveraged tracking on per day basis, the tripling effect gets compound really quickly when tesla have a string of green days.
However conversely when tsla have a series of red days, the etf crash 3 times as hard. When tsla have series of choppy days, the etf will end up under perform.
But if you believe tesla will continue have a series of green days, then I think 3LTS is a pretty good play. Expense ratio is around 1%. You can think of it as getting triple margin on tesla with 1% interest rate. Plus this "margin" cannot be margin called unlike a regular margin.
** due to the recent nature of this ETF, it does have pretty terrible tracking of the underlining asset though. But i think a short term play could be good if you put in tight stop loss. After all you can afford to have really large trailing stop loss buy/sell. Assuming If you can stomach the 3x tesla's typical volatility