A 50% drop in MSTR in a single day would theoretically wipe out the MSTU/MSTX 2x funds entirely, resulting in a 100% loss.
Hey Bob – you're close. Get this, if MSTR does -50% in a day, then the MSTUMSTX 2x funds get wiped out. Completely. Everyone loses -100% of their money. ~10bn aum between the two leveraged funds on a stock with a 80bn market cap. — lowstrife (@lowstrife) December 19, 2024 Factchecked by Chatgpt: Leveraged Funds …