TSLL ETF

I have a sell rating on TSLL due to TSLA's ongoing volatility and poor earnings reactions, making it unsuitable for long-term investment. EV prices have dropped significantly, presenting downside risks for Tesla's Q3 profit report and impacting TSLL's performance. TSLL should be used as a short-term trading vehicle, not a long-term investment, due to the inherent risks of leveraged ETFs.

TSLL is a buy and can be used to build starting position to tap into the revived growth opportunities with TSLA. TSLL is a (2X) leveraged ETF with single underlying TSLA. Its volatility and risks should be hedged by owning TSLS (1X inverse). TSLL can generate good income by selling the covered calls. TSLL and TSLS both offer dividend which is added benefits for shareholders.

The not-so-secret ingredient that's been fueling gains for big tech since its fourth quarter has definitely been artificial intelligence (AI). The lack of AI tailwinds for Tesla could be pushing the company's stock down further.

Direxion Daily TSLA Bull 1.5X Shares ETF is a leveraged fund that aims to provide 1.5 times the daily performance of Tesla, Inc. shares. Trading the leveraged TSLL ETF allows investors to capitalize on Tesla's highly volatile stock price and take advantage of short-term price movements.

Tesla's stock has fallen 20% the past month as bears continue to apply pressure following the electric automaker's Q3 earnings report. A Tesla turnaround or more selling will provide enough volatility for traders unsure of which side to take, which is where leveraged exchange-traded funds (ETFs) can help.

Halfway into 2023, Tesla's stock is up over 140%, but recent profit-taking could push the stock lower in the interim, making way for traders to take advantage of the Direxion Daily TSLA Bear 1X Shares (TSLS).