Market fluctuations this month are seemingly inevitable, which should pan out well for one options trader who bet $9 million on a September volatility spike. For traders who want to stay ready when trading the S&P 500 and big tech, they can use leveraged/inverse ETFs from Direxion.
The September Effect can certainly bring angst to most investors. However, traders can use the volatility to play both sides of the equation regardless if markets are trending higher or lower.
Traders looking at the S&P 500 can use the +Direxion Daily S&P 500 Bull 3X Shares ETF+ (SPXL ) if the index heads higher. Conversely, in the event of a market correction, taking the other side with the Direxion Daily S&P 500 Bear 3X ETF (SPXS ) is the ideal countermove. Both funds offer 300% exposure for maximizing profits in bullish or bearish moves.
Alternatively, large-cap tech giants comprise a sizable portion of the S&P 500. As such, their performance can sway movements in the S&P 500, allowing traders to capitalize on more concentrated plays focused on tech.
If this is the case, traders will want to look at the Direxion Daily Technology Bull 3X ETF (TECL ) when bullishness is abound. On the other end of the spectrum, they can use the +Direxion Daily Technology Bear 3X ETF+ (TECS ). Both funds also provide exposure to 300% of the of the daily performance of the Technology Select Sector Index, which is provided by S&P Dow Jones Indices and includes domestic companies from the technology sector.
Singled Out: Single-Stock ETFs to Consider
Trader who want single stock exposure to take advantage of the September volatility can do so with added leverage. Additionally, they can stay flexible by taking the inverse side if a sell-off takes place.
Consider these options in heavily traded stocks:
- Direxion Daily META Bull 2X Shares (METU ) / Direxion Daily META Bear 1X Shares (METD )
- Tesla: Direxion Daily TSLA Bull 2X Shares (TSLL ) / Direxion Daily TSLA Bear 1X Shares (TSLS )
- Apple: Direxion Daily AAPL Bull 2X (AAPU ) / Direxion Daily AAPL Bear 1X Shares (AAPD)
- Amazon: Direxion Daily AMZN Bull 2X Shares (AMZU ), Direxion Daily AMZN Bear 1X Shares (AMZD )
- Google: Direxion Daily GOOGL Bull 2X Shares (GGLL ) / Direxion Daily GOOGL Bear 1X Shares (GGLS )
- Microsoft: Direxion Daily MSFT Bull 2X Shares (MSFU ) / Direxion Daily MSFT Bear 1X Shares (MSFD )
- Nvidia: Direxion Daily NVDA Bull 2X Shares (NVDU ) / Direxion Daily NVDA Bear 1X Shares (NVDD )
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
