Getting Paid To Limit Downside On DUST
As Tim has noted (in this post last month, for example) precious metals and related securities remain in a multiyear bear market. As that bear market has continued this year in gold, gold miners, and ETFs that track them, shares of the Direxion Daily Gold Miners Bear 3x Shares ETF (DUST) have gained 116% year-to-date as of Monday, October 21st’s close. DUST is quite volatile though, as triple-leveraged ETFs typically are, and that means it can move against longs fairly quickly. For example, DUST dropped about 23% in the last week, from October 14th to October 21st. For DUST longs holding gains from earlier this year, but wary of downside risk going forward, below is a way you can get paid to hedge. (more…)