2x leverage wasn’t enough so we got 3x, now Kelly Capital are taking it to an extreme with 100x leverage. It’s good to see someone at the SEC has a sense of humour, Ben Meriwether is a funny guy. Of course the powers that be at Kelly Capital also appear to be full of mirth calling their leveraged ETFs, SINK and SOAR.

“These are intended for attentive traders only,” says Kelly Capital chief executive officer Jason Kelly. “The extreme leverage employed will cause both funds to go bankrupt within the course of most trading days.”
Kelly Capital will reset and re-launch the funds at the beginning of each trading day. The company is in talks with the Security and Exchange Commission about the possibility of re-launching the funds after lunch should they go bust in the morning session, but the SEC is balking.

SEC spokesperson Ben Meriwether says: “We recognise the right of investors to employ as much leverage needed to find fortune or ruin in a day, we just aren’t sure of the need to extend that right twice per day.”

via Kelly Capital launches 100x leveraged ETFs | ETF Express.

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