Tag: TSLQ

8 Ways to Trade Tesla Stock Using ETFs (and without using options)

by Fred Fuld III

2 minute read time

Did you know that there are eight different ways to trade Tesla (TSLA) using ETFs, and without using options?

That’s right. In addition to just buying and shorting the Tesla stock, there are other ways to speculate on the price of Tesla.

These ETFs are especially useful for those who do not want to trade options or are not eligible to trade options. These are also beneficial to traders who want to short TSLA in their IRA account (in which shorting is prohibited).

So what are the alternatives?

Here’s an overview of the Tesla ETFs, all of which track Tesla (TSLA) with varying leverage or inverse positions:

  1. AXS TSLA Bear Daily ETF(TSLQ): This fund provides 2x inverse (-200%) exposure to Tesla’s daily performance. It is a short-term tool for sophisticated investors who want to profit from Tesla’s price decline. It carries a 1.15% expense ratio, and due to its high volatility (361.41% over 5 days), it’s intended for daily rebalancing​(GraniteShares)​.
  2. YieldMax TSLA Option Income Strategy ETF (TSLY): This ETF seeks to generate monthly income by selling covered call options on Tesla stock. It is an income-focused strategy rather than a leveraged or inverse play​(ETFdb).
  3. Direxion Daily TSLA Bull 2X ETF (TSLL): This fund offers 2x the daily performance of Tesla’s stock. Like other leveraged ETFs, it’s designed for short-term traders and rebalances daily. It carries a higher risk due to its leverage​(ETFdb).
  4. GraniteShares 1.5X Short TSLA Daily ETF (TSDD): Aims to deliver 1.5x inverse (-150%) of Tesla’s daily returns. This is a tool for shorting Tesla’s price moves with moderate leverage​(GraniteShares).
  5. GraniteShares 1.75X Long TSLA ETF (TSLR): This ETF targets 1.75x the daily performance of Tesla’s stock, providing bullish investors with leveraged exposure​(GraniteShares).
  6. T Rex 2X Inverse TSLA Daily Target ETF (TSLZ): Offers 2x inverse (-200%) exposure, designed to short Tesla’s price movements on a daily basis. It’s useful for those expecting Tesla’s stock to decline​(GraniteShares).
  7. T Rex 2X Long TSLA Daily Target ETF (TSLT): A bullish play offering 2x Tesla’s daily performance, similar to TSLL but with slightly different mechanics​(GraniteShares).
  8. GraniteShares 1.25X TSLA Daily ETF (TSL): Provides 1.25x exposure to Tesla’s daily performance, allowing for moderate bullish leverage​(ETFdb).

Keep in mind, these ETFs are complex and carry high risks, especially the leveraged and inverse funds, which are typically used for short-term trading strategies rather than long-term investments.

Disclosure: Author has a small long position in TSLA. (Small means way less than 100 shares.)

How to Short a Stock by BUYING a Stock

 AXS Investments Launches First-Ever U.S. Suite of Single-Stock Leveraged Bull and Bear ETFs 

by Fred Fuld III 

Recently I wrote an article called 10 Ways to Make Money in a Bear Market. Well, now there is an additional way. You can now buy a single stock bearish ETF for certain stocks.

AXS Investments, a leading asset manager providing access to alternative investments for growth, income and diversification, today, July 14, 2022, launched a suite of eight ETFs that seek to provide leveraged long or inverse exposure to the daily performance of some of the most actively traded stocks across a variety of sectors. 

“We are thrilled to be the first firm to bring single-stock leveraged and inverse ETFs to U.S. investors,” said Greg Bassuk, CEO of AXS Investments. “With the launch of this highly innovative family of ETFs, AXS has once again opened new access for traders and sophisticated investors, namely to express their high-conviction views on some of the most actively traded single stocks, regardless of whether their sentiment is bullish or bearish. AXS is excited to continue our aggressive build-out of highly differentiated ETFs designed to provide investors with unique, first-of-their-kind investments to achieve their varying objectives.” 

The initial suite of AXS single-stock ETFs provides investors with leveraged long (“Bull”) and short (“Bear”) daily exposure to the following stocks: 

• Tesla: AXS TSLA Bear Daily ETF (TSLQ) 

• NVIDIA: AXS 1.25X NVDA Bear Daily ETF (NVDS) 

• PayPal: AXS 1.5X PYPL Bull Daily ETF (PYPT) and AXS 1.5X PYPL Bear Daily ETF (PYPS) 

• Nike: AXS 2X NKE Bull Daily ETF (NKEL) and AXS 2X NKE Bear Daily ETF (NKEQ) 

• Pfizer: AXS 2X PFE Bull Daily ETF (PFEL) and AXS 2X PFE Bear Daily ETF (PFES) 

As you can see, some of these ETFs have a leveraged bearish goal, such as Pfizer, which has a goal of providing two times the inverse of the daily performance of the price of the stock.

AXS Continues to Expand Fund Lineup with Fast-Growing Suite of First-of-Their-Kind Strategies. 

Today’s rollout of these new ETFs is just one of many major strategic growth initiatives successfully achieved by AXS.

“Whether it is powerful inflation fighting tools, ways to express views on innovation, or a host of other novel investments that previously were unavailable to investors, our goal remains to be the leader in providing investors with access to the tools needed to build portfolios and to trade effectively in today’s volatile markets,” continued Bassuk. “We’re very excited about today’s news, and all that we still have in our product pipeline for 2022 and beyond.”