Leveraged Biotech?

[Cuddles]

I've been sitting on some mutual fund and ibb and xbi etf's. I still think there's room for growth at the current price. Anyone doing leveraged plays? Recommendations?

 

[ET180]

I don't recommend any leveraged ETF as a long-term investment. The leverage does not come free and they are only designed to be leveraged on a daily basis. If you want more exposure, just buy more.

 

[recession2016]

I've been sitting on some mutual fund and ibb and xbi etf's. I still think there's room for growth at the current price. Anyone doing leveraged plays? Recommendations?

VRX - bottomless pit of agony that might be a 2-3x bagger or headed to bankruptcy
GILD - solid pharma with 10%+ potential to the upside

 

[Mark Lapin]

I don't recommend any leveraged ETF as a long-term investment. The leverage does not come free and they are only designed to be leveraged on a daily basis. If you want more exposure, just buy more.

I agree. Leveraged ETFs for the individual investor spell disaster in the long term based on they are structured. If they go against you, it takes more of a %-gain to make them go back up how much they went down.

 

[truetype]

If they go against you, it takes more of a %-gain to make them go back up how much they went down.

OK, but this is true of any security.

 

[obolon_]

My aggressive portfolio:

Alliqua BioMedical Inc (ALQA.US)
Aurinia Pharmaceuticals Inc (AUPH.US)
Navidea Biopharmaceuticals Inc (NAVB.US)
Karyopharm Therapeutics Inc (KPTI.US)

I'm going to buy these stocks after correction. Portfolio chart:

 

[murray t turtle]

My aggressive portfolio:

Alliqua BioMedical Inc (ALQA.US)
Aurinia Pharmaceuticals Inc (AUPH.US)
Navidea Biopharmaceuticals Inc (NAVB.US)
Karyopharm Therapeutics Inc (KPTI.US)

I'm going to buy these stocks after correction. Portfolio chart:

%%
You illustrated my thoughts Obo,; is that a $40 to $ 63/+ daily gap?????? Anyway it cut$ both way- that is a wild sector from way back.

LABU was good short[downtrend] from >>$200 down to to $20, dont know if its split adjusted ; hope this helped, it helped me.....................................................................

 

[Mark Lapin]

OK, but this is true of any security.

Yes true for any security, but for leveraged ETF's, especially 3x leveraged ones you are going to run into some MAJOR trouble

 

[truetype]

Same for any other security with the same volatility, for instance low-cap biotechs or junior gold miners. There's nothing magical about levered ETFs.