Number Monkey said:
I'm interested in AGQ, but I've never done a LETF. When you say a short-term play, are you saying don't leave your money in it longer than a week, a month? Once you make 10%, you get out and then maybe get back in? Just not familiar with the strategy on a LETF and Schwab puts all these disclaimers on them that make me hesitant...
The price scales are different, but the shape and price action is almost the exact same. As SLV goes, AGQ goes harder.
Most recent low was SLV around $24 from $26.40. AGQ hit $31 from $41. Deeper drawdowns on silver weakness. But while SLV might jump to $30, AGQ could hit $75-$80 at the same time. When SLV jumped from $11.50 to $26.25 in 2020, AGQ went from $13 to $71.
Quote:
This ProShares ETF seeks daily investment results that correspond, before fees and expenses, to 2x the daily performance of its underlying benchmark (the "Daily Target").
While the Fund has a daily investment objective, you may hold Fund shares for longer than one day if you believe it is consistent with your goals and risk tolerance.
For any holding period other than a day, your return may be higher or lower than the Daily Target. These differences may be significant. Smaller index gains/losses and higher index volatility contribute to returns worse than the Daily Target. Larger index gains/losses and lower index volatility contribute to returns better than the Daily Target.
The more extreme these factors are, the more they occur together, and the longer your holding period while these factors apply, the more your return will tend to deviate. Investors should consider periodically monitoring their geared fund investments in light of their goals and risk tolerance.
If you are doing long dated options, stick with SLV. If SLV is in a strong uptrend and you are considering buying shares, throw some at AGQ too. But once the uptrend ends, get out of AGQ.
Currently, 85% of AGQ holdings are in July Silver futures, the rest are in swaps.
Quote:
It is a "rolling index," which means that it does not take physical possession of any commodities. The roll occurs over a period of five business days in certain months according to a pre-determined schedule, generally beginning on the sixth business day of the month and ending on the tenth business day. Each day, approximately 20% of each rolling futures position that is included in the month's roll is rolled, increasing from 0% to 20%, 40%, 60%, 80% and finally 100%.
“Give it hell Heinekandle, I’m enjoying it.”
- Farmer @ Johnsongrass, TX
“No secure borders, no alpha military, no energy independence, no leadership and most of all no mean tweets - this is the worst trade I’ve ever witnessed in my lifetime. ***Put that quote in your quote/signature section HeinendKandle*** LOL!”
- also Farmer @ Johnsongrass, TX (obviously in a worse mood)
AGQ is at least worth a good scalp. maybe even a couple days hold in a strong uptrend. 
