The price to earnings was a bit high before, but the fact they keep exceeding targets and are profitable this will reverse at some point.
The only other factor is increased competition and I suspect this might fall a bit further yet.
1 Like
hei @Marc45 . I was curious about the potential reverse split of the etp in case the market has a bigger than expected downturn. By my calculation some of them could reach 0.2-0.3 ( $/€ ) in the upcomming two months.
1 Like
Hi @ovidiuovidiuovidiu
Thanks for your message 
Indeed, it is very possible that we need to do a reverse split for some 3x Long ETP if the market is still bearish for the upcoming months.
it is a process we already did and we can do again if necessary.
2 Likes
Perfect. Thank you for notice
1 Like
It seems that the market has listened to me :)) . Now , the person that will managed to time the bottom for a 3x long leveraged etp will be the winner here
2 Likes
it was a good day for who buy 3x Netflix today
and even better for 3x Moderna buyers 
What was the spread between the buy and sell price throughout the day? My only reservation with playing these positions is the exit liquidity and the spread (as often saw a while back while tracking the ones I have i my watchlist that you could come unstuck by these factors). Hopefully this is no longer the case…
1 Like
that’s a good question !
Liquidity and spread are managed/provided by our Market Maker (Natixis).
I don’t have a printscreen of today’s spread but we took a printscreen as example during the worst when Netflix falls. Spreads remains very stable despite the situation…
(keep in mind that this example is a kind of worst case scenario, with some other ETP provider, spread were 131%)
1 Like
My first test of 3x.
Probably already covered and common.
Spread seems extreme…
So at hights of buy price 0.98, sell price was not over 0.933, almost 5% spread.
2 Likes
Anyway exited position with profit, but experience is very bad for end user, on volatility very huge spread.
Not my kind of game it seems.
2 Likes
Must feel like gambling.
1 Like
The Bid/Ask spread depends of several variables:
- As it’s an European domiciled ETP, the spread is wider before the US markets opens. As it uses the price of the equivalent EDR/GDR that have lower liquidity than the real underlying.
- In times of high volatility, the spread widens.
- The liquidity (trading volume) of the product also affects the spread.
- And as it is a leveraged product, perhaps it also affect the spread, due that the product is more risky, the investor/market maker demand a higher risk premium (higher sell price/wider spread).
2 Likes
Thank you for your message @RLX , it’s a better explanation than I could have given
1 Like
Week ending 28th January, top performing #singlestockETPs
Top long: +3x Vodafone (3LVO) +26.8 %
Top short: -3x NIO (3SNI) +103.6%
Past performance is no guarantee of future returns. Capital at risk.
ETP of the day
1 Like
IMPORTANT!!!
Please keep in mind that the upcoming Monday (21st February 2022) is a holiday in the USA *** President Day 2022 ***
US Markets will be closed that day.
BUT…
The London Stock Exchange, Euronext Paris and Borsa Italiana (where GraniteShares ETPs are listed) will be open. So, GraniteShares ETPs tracking US Stocks will be tradable.
On Monday, before to trade our ETPs with US Stocks underlying, you must be aware of:
1- Market participants (including Market Makers) will use European ADR* for the pricing and the liquidity.
2- Liquidity and trading volume on European ADR* are usually lower than on the NYSE. This implies that spreads are expected to be larger during the day. Also, this specific market condition can cause higher volatility and brutal price moves (especially in case of important News or political announcements).
*European ADR: NYSE listed US Stocks that are also listed in European Stock Exchange (cross listing). Most of the US Large Cap are cross listed in Germany (Frankfurt) like Apple, Amazon, Google, Tesla, Microsoft etc… or listed in France like Caterpillar, General Electric or NIO (Chinese).
3 Likes
@Marc45 has 3LRR hit the stop loss and paused trading?
1 Like
That’s correct we have a Stop Loss event in process right now
1 Like
@Marc45 when will you get rid of the stop loss? Is it there for the entire day or… Longer or just for the time being.
If I have a 100% loss will I loose all my shares and all my money?
1 Like