What if you could get 2x the upside of a stock… but only 1x the downside?
But of course, there’s 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 we're 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
It's 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, we're seeing the ETF structure being pushed to its limits.
