Ascension100

Ascension100 t1_j6peimx wrote

Honestly if we have another rate hike add pressure we might see oil prices tank and when oil prices tank natural gas can be affected and go down also in a global recession . The winter has been fairly mild so far so demand is not really been their . But if we do have a fall or some consolidation period it would be worth buying the next month or 2 as once free port on is back in full operation we will need to export lng again to Europe so they can stock up for winter .

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Ascension100 t1_iy12eig wrote

Not really as in times of larger movements in a more parabolic fashion over time you can see huge leverage more then what the options priced in, which is the benefit.

In the march 2020 to nov 2021 qqq bull run we saw roughly a 150% increase in the qqq index , while tqqq did 1000% increase. That is a almost x7 roi ( vs the x3 you would expect , so a 2.33 more return then you would expect.

Currently its 23, so its 10.6 currently the option close to itm

At 290 it would be 133.64 using 286/ (23/10.6 )

QQQ shows 290 at 57.5 ( ask )

133.64/57.5= 2.3x leverage priced in, meaning you get a 30% free roi boost as its not the x3 minimum. Obviously in times of large ranging you can get lower then the x3 return over a period of few months

But if things go parabolic like we had in 2020-2021 then you can see higher leverage, which was like almost x7 ( 6.66 to be exact),

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If QQQ did x2 from here to jan 2025

You would get a return of 580-290= 290, 290-59=231, 231/59=3.9 ,( x4 roughly)

TQQ if you see just a x3 leverage return in a parabolic trend, then

23 ( current price ),the bid is 10.6 for jan 17 2025 contact

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23*2( total index performance ) *3 ( minimum likely leverage in average)=138

138-23=115

115/23=x5 roughly with the minimum expected leverage.

Obviously if it has huge ranging movement and not parabolic you might see a bit less like x2.5, which would be pretty much the same as whatever is priced in.

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Its more of a problem when we see huge ranging periods like from early 2018-2019. Then you get fucked.

But if someone bought as soon as the TQQQ launched they would be seeing insane roi from then till now relative to just holding an index.

It went from 0.4 in early 2010 to a ATH in nov 2021 of 88, a roughly x220 return while QQQ did 866% ( roughly 900%)

so 22000/900=24.4, so x25 roughly

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Ascension100 t1_iuge456 wrote

So rate hike to stop a recession. Rate hikes are what is causing the market to lower in the first place. The only reason its happening is to stop inflation from getting out of control in the hopes of orchestrating a stock crash to crash commodities, but commodities are increasingly getting harder to manipulate as other factors are impacting their prices more. Not to mention the suadis and opec are tired of the feds manipulation and are willing to cut oil production faster than the feds are willing to increase rates.

Rate hikes will of course cause a descent stock market correction, but allow for future growth when things settle, but the problem is that the market will want 0% again and won't tolerate "higher " rates like 2% and have a decent booming stock market.

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