From a math perspective yes you are correct, but there's a big negative connotation associated with reverse splits. The split is often (ESPECIALLY in a leveraged ETF) self-defeating as the stock is subject to more and more downward pressure.
Not sure if it applies to leverage ETFs but historically, stocks that split tend to go higher while stocks that reverse split continue to go lower.Brian Earl Spilner said:
I mean if a reverse split happens it obviously indicates the price has continued to tumble, but people make it sound like the reverse split itself is what will kill your investment.
Brian Earl Spilner said:
I mean if a reverse split happens it obviously indicates the price has continued to tumble, but people make it sound like the reverse split itself is what will kill your investment.
BOIL follows Henry Hub though. I agree it will RS if it gets too low, but if the hub prices skyrocket later, BOIL will follow.ProgN said:Not sure if it applies to leverage ETFs but historically, stocks that split tend to go higher while stocks that reverse split continue to go lower.Brian Earl Spilner said:
I mean if a reverse split happens it obviously indicates the price has continued to tumble, but people make it sound like the reverse split itself is what will kill your investment.
I was just trying to demonstrate how decay works. Reverse splits are a by-product of decay as well as price changes.Brian Earl Spilner said:
But decay is the culprit. Obviously it's not a good long term investment and the longer you hold the more unlikely to ever recover your investment.
But I'm still not in agreement that the reverse split has anything to do with that. The plummeting price of the underlying commodity and the decay alone will do that even if the reverse split never happens.
You're making it sound like a tail wagging the dog. (Reverse split being the tail.)
Uh, I guess you didn't actually read my post?perma Brew doomster said:
hold it forever and just see what happens, lol
Looks like a come to Jesus moment re inflation.ProgN said:
What did he say? He didn't try, it looks like he did.
shall we go for round 4? hold or does it giveDan Scott said:
Looks like for 3rd time this week market gaps down lower and closer substantially higher. 4090ish is effing strong.
FED'S BULLARD: RECENT DATA HAVE MADE MARKETS REALIZE THAT THE FIGHT AGAINST INFLATION WILL BE A LONG ONE.
— Breaking Market News (@financialjuice) February 16, 2023
FED'S BULLARD: I WOULDN'T RULE OUT SUPPORTING 50-BP MARCH HIKE.
— Breaking Market News (@financialjuice) February 16, 2023
$30,000 Millionaire said:
Tempted to try small lotto long here.
I wouldn't rule out supporting it...what a non-answerDan Scott said:FED'S BULLARD: RECENT DATA HAVE MADE MARKETS REALIZE THAT THE FIGHT AGAINST INFLATION WILL BE A LONG ONE.
— Breaking Market News (@financialjuice) February 16, 2023FED'S BULLARD: I WOULDN'T RULE OUT SUPPORTING 50-BP MARCH HIKE.
— Breaking Market News (@financialjuice) February 16, 2023
palogrande-ag said:shall we go for round 4? hold or does it giveDan Scott said:
Looks like for 3rd time this week market gaps down lower and closer substantially higher. 4090ish is effing strong.