CLIQUET OPTIONS: WALL STREET'S INSURANCE POLICY AGAINST YOUR ETF BLOWING UP

The 'tourist examines the stop out danger and the systemic macro risks from leveraged ETF products and concludes the market is too complacent

CLIQUET OPTIONS: WALL STREET’S INSURANCE POLICY AGAINST YOUR ETF BLOWING UP

All right, my previous post, LEVERAGED ETFs: DAILY REBLANCING, ETERNAL CONSEQUENCES, hopefully explained how leveraged ETFs work. This write-up will focus on the underappreciated risks associated with these products — both to the individual holders and also the macro risks to the…