Key insights
- The post proposes a high-risk trading strategy involving leveraged ETFs (RKLX) and a specific stock (RKLB) around earnings announcements. The goal is to capture pre-earnings gains while avoiding potential post-earnings drops. While potentially profitable, this strategy is highly speculative and carries significant risk due to the volatility of leveraged ETFs and the inherent uncertainty of earnings outcomes. The strategy's viability depends heavily on accurate timing and market conditions, making it unsuitable for risk-averse investors.
I’ve been looking into leveraged etfs/stocks lately and it got me thinking.
What if I put my money into a leveraged position like RKLX and then the day before earnings I sell and put it all into RKLB. Then after earnings depending on the results I put it back into RKLX and move on to another company.
That way I grab the gains between earnings and avoid the potential shock of a bad earnings report and a 20-50% dip. If it drops it’s at least contained and if it rises then hell yeah I still get gains.
I’d be ok missing 20-50% gains overnight if it means avoiding the same as a loss and losing all my gains pre earnings.
Thoughts?