What if you could get 2x the upside of a stock but only 1x the downside? ????
But of course, theres a catch.
The upside is capped.
The first 2x Capped Accelerated ETFs start trading today.
These sit halfway between structured products and ETFs.
And this is the first time were seeing such strategies on single stocks.
How they work:
2x the monthly upside of the stock, up to a cap
1x downside exposure
Reset monthly
Its not magic. Just structured via options.
1) synthetic long position
2) additional ATM call (for 2x exposure)
3) short OTM calls (to fund the trade and set cap)
Once again, were seeing the ETF structure being pushed to its limits.