T-Rex 2X Long MSTR Daily Target ETF

MSTU

Market cap $759M

The T-Rex 2X Long MSTR Daily Target ETF (MSTU) aims to deliver 2x daily returns of MicroStrategy (MSTR), but carries significant risk. Technical signals for MSTR are bearish: declining retail interest, a recent 'death cross,' and a break below the 12-month moving average. MSTU and its peer MSTX have both underperformed MSTR significantly year-to-date due to leveraged ETF decay and market volatility.

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.

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MSTU is a 2X leveraged ETF on MSTR, which itself is a leveraged play on Bitcoin, offering high potential returns and risks. MSTU's extreme volatility, with an implied volatility of 180% and an ATR of 19%, makes it suitable only for short-term trading. MSTU has outperformed during Bitcoin bull runs but underperformed during bearish phases, emphasizing the importance of timing in leveraged funds.

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