I use the inverse leveraged products to hedge my risk. For example, I bought a share of Google upon the advice of a broker acquaintance. I was worried about the upcoming earnings report, but wanted to hold onto my stock for the split coming this Summer. So I bought an inverse leveraged product for a few days to lessen my risk during earnings season. I did have an issue with the ProShares UVXY ETF. It didn't seem to be tracking the direction of the underlying VIX index for a couple of weeks. I emailed ProShares about this, but received no response. Leveraged products remind me of options. They both need to be closely monitored, IMO.
J Meyers Comment On Regulatory Notice 22-08
I use the inverse leveraged products to hedge my risk. For example, I bought a share of Google upon the advice of a broker acquaintance. I was worried about the upcoming earnings report, but wanted to hold onto my stock for the split coming this Summer. So I bought an inverse leveraged product for a few days to lessen my risk during earnings season. I did have an issue with the ProShares UVXY ETF. It didn't seem to be tracking the direction of the underlying VIX index for a couple of weeks. I emailed ProShares about this, but received no response. Leveraged products remind me of options. They both need to be closely monitored, IMO.