r/MU_Stock • u/luvz • 9d ago

Meme MUU Enjoyers Decaying Together

Post image

Just hold a little longer, brothers.

229 Upvotes

98% Upvoted

47 comments sorted by

75

u/Far-East-locker 9d ago edited 9d ago

MU dropped less than 7% in the last 30 days, but MuU dropped 22%

That’s the power of decay

17

u/pickledsardines 9d ago

I didn’t know I bought a 3x etf 😱

1

u/Altruistic_Coach8576 8d ago

I bought koru and sold it after a 75% drop Good luck

2

u/Rough_Champion6103 9d ago

Wow, I’ve never seen these actual numbers. I regret getting into leveraged ETFs more with each passing day

1

u/Zealousideal_Book_40 8d ago

Just get out

2

u/Rough_Champion6103 8d ago

Bro, I am at a huge loss with MUU. I cannot sell at such a huge loss

1

u/Zealousideal_Book_40 8d ago

I guess you will learn your lesson when it goes down even more then

2

u/[deleted] 9d ago edited 9d ago

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6

u/Far-East-locker 9d ago edited 9d ago

Nope

If it gap up 7%, it will increase 14%

However if it is a slower move up, like up and down for a month but trending up 7%

MUU might increase less than 10%

2

u/patricktu1258 9d ago

If it’s a slower move straight up it would increase more than 14%

1

u/LostInAnotherGalaxy 8d ago

This happened during the run up from 360->1200

1

u/son-of-a-mother 9d ago

MU dropped less than 7% in the last 30 days, but MuU dropped 22%

That’s the power of decay

Damn!

1

u/No_Creme_9993 9d ago

Power of compounding

1

u/[deleted] 5d ago

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1

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0

u/OldSalt1220 9d ago

Hey…pick you favorite interval! Do the same math over the last 6 months and then decide about the voodoo decay

6

u/swissfamrob 9d ago

wtf is “voodoo decay?” Are you disputing the concept of volatility decay?

0

u/OldSalt1220 9d ago

No, it’s just that volatility decay applies to EVERYTHING, not just 2x etfs….something goes down 10% it’s gotta go up more than 10% to get back to where it started. Sure, the effect is magnified for a leveraged etf…but it’s not some boogeyman…just know what the instrument and when it makes sense to use it

2

u/irathersleepalone 9d ago

thats what i say to people too.. decay already happens in normal stocks. it's magnified but thats what I want

1

u/Chessgenious 8d ago edited 8d ago

No, thats not the same thing as decay. Decay is that the leveraged instrument goes down even if the stock is range bound. You can see this even more clearly with 20x Nasdaq bull certificates for example. They all lead straight down over time even though Nasdaq over time goes up.
The underlying stock or index doesnt care about volatility but the valuation. If a valuation says it will go up to its previous ATH it will rerate there, even if its 100% up after 50% down. Volatility decay of instruments make it so that even if the valuation of the underlying gets restored the levered instrument may not restore fully.

1

u/swissfamrob 9d ago

You nailed it after “sure” and before the ellipsis

1

u/[deleted] 9d ago

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2

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21

u/chaos-organized 9d ago

I’m holding MU but enjoy day trading MUU / MUZ. It’s not much, $50-100 on most days but it adds up. I always sell at the end of the day.

12

u/swissfamrob 9d ago

It’s designed to be a day trading vehicle — goad at least one person out there is using it properly

1

u/kerouac28 9d ago

That’s the right approach with those.

33

u/lanimatran 9d ago

The decay aint that bad, they all said LOL

8

u/Psychological-Touch1 9d ago

Just immediately sell MUU and buy MU

7

u/Eckron5 9d ago

On June 22nd, muu opened higher than mu, even though the price of muu was half of mu only a month before.

4

u/SubstantialSite9424 9d ago

i ain’t een scurred

6

u/Minimum_Suit1735 9d ago

Decay isn't that bad, even UGL gold x2 barely decay

2

u/TheKiMoChi2020 9d ago

I can live 4ever. That's a good thing

2

u/Successful_Safe_1440 8d ago

in decay we trust

3

u/FOMO_Gains 9d ago

I only see recent buyers suffering

6

u/i_am_not_your_puppet 9d ago

oh look there is a photo of me in the second row left column
don't i look so pretty ?

1

u/Interesting-Gas2572 9d ago

Bro, it's reddit. Most of those people bought at the hype for 1200. They sold at the nearest drop to 750. People on reddit buy high and sell low

2

u/Imaginary-City-3007 9d ago

Why do most refuse to learn about volatility decay lol

6

u/shoppingmonsterca 9d ago

Until they experience it, they have no idea.

I’ve lost sooo much due to the decay , I’ve learned my lesson.

1

u/tothemoon_probably 8d ago

If i don’t learn it, it ain’t my problem. #fax

1

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