u/awagator

Can someone please help explain this to me, I am having difficulty.

Spyi dropped 0.22% - 0.11. To 52.40

Spyh dropped 0.40% - 0.22. To 54.94

Xspi dropped 0.51% - 0.25. To 48.92

I would have thought the hedged would have dropped less? How do I understand how the leverage works because it doesn’t seem like a simple calculation, and I understand the prices are a little different but it doesn’t seem like the math is right.

For example if I am 3x leverage on a $1 stock

If it moves up 3%. Shouldn’t I be at $1.09 and if it is down 3% I lam at $0.91?

Thank you for any help in understanding how these move!