This had been delisted.
I don’t own it but can this just happen? I’m feeling nervous about by leveraged positions now…
Anyone can give me insight? Seems like all currency denominations have delisted too!
1 Like
Could not find much infos about it specifically, but looking at the page from LeverageShares itself (the company issuing the product), it lists a price of 0.00$, last refreshed on the 5th of November.
If you look at other products, they are always refreshed daily on their website.
I am guessing Peloton had a loss bigger than 33% on that day, hence the 3x product lost 100% of its value; and I think most stock exchange might freeze trading before delisting securities that reach 0.00.
EDIT: Indeed on the 5th of November, Peloton lost 35.3% from previous close, hence the 3x products lost 100% of their value.
Furthermore, most stock exchanges in the world would delist shares reaching 0.00
Leveraged products will always carry a risk of becoming worthless, regardless of their shape. As a rule of thumb, 2x leverage allow for a loss of 50%, while 3x only have room for a 33.3% loss.
4 Likes
Wow thanks for this.
1 Like
Hi @Zergui and @bmbm365 - yes, this is the case.
Simply put: The price of Peloton stock dropped over 33.34% on Friday (5 November), triggering an intraday rebalance of the index and bringing the 3x Peloton ETP Value to zero . Hence, all the currency denomination of the Peloton ETPs were removed (redeemed) from trading and shareholders of PTON ETPs will receive a minimum redemption amount of $0.10 per ETP share held.
Full explanation can be found here:
3x Peloton Redemption
2 Likes
Typo @Oktay? The prospectus mentions $0.01 per share redemption. Which is it? (My money is on the 1cent 
)
It’s a whopping $0.10! 
Just checked with the head of product to confirm, we need to update the info on the LSE site…
1 Like