La vendita allo scoperto per Direxion Energy Bull 2X Shares dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di Direxion Energy Bull 2X Shares. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

Direxion Energy Bull 2X Shares (ARCA:ERX), Report sulle vendite allo scoperto

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The index is provided by S&P Dow Jones Indices and includes domestic companies from the energy sector which includes the following industries: oil, gas and consumable fuels; and energy equipment and services. The fund invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index which provide returns consistent with the objective. It is non-diversified.

Direxion Daily Energy Bull 2X Shares

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As investors look to navigate the volatility of <a href="https://www.benzinga.com/premium/ideas/2025-market-outlook-navigating-uncertainty-with-high-yield-strategies/">global markets in 2025</a>, Direxion's CEO, Douglas Yones, sees the technology and energy sectors as key growth areas.
In an exclusive interview with Benzinga, he asserted that while broader market uncertainty persists, the <a href="https://www.benzinga.com/topic/semiconductors">semiconductor</a> and <a href="https://www.benzinga.com/topic/energy">energy</a> industries are poised to stand out.
<h2 class="wp-block-heading">Semiconductors: A Key Growth Sector</h2>
Yones points to the semiconductor industry, driven largely by the increasing demand for AI technology. "Technology, particularly the AI and semiconductor industries, stands out as a key area for growth," he shares. 
As AI applications expand, the need for more advanced chips is set to rise, making this a high-potential sector. For traders looking to capitalize on this, Yones recommends leveraged ETFs such as the Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>), which offer significant exposure to the semiconductor industry.
Read Also: <a href="https://www.benzinga.com/25/01/42961753/analyst-sees-broadening-rally-in-semis-coming-in-2025-2-top-stock-picks-and-2-to-avoid">Analyst Sees &#8216;Broadening Rally&#8217; In Semiconductors In 2025: 2 Top Stock Picks, 2 To Avoid</a>
<h2 class="wp-block-heading">Energy Sector Boosted By Policy Shifts</h2>
The energy sector is also expected to thrive in 2025, with favorable policies likely to drive growth in fossil fuel companies. "The Trump administration has made its stance on drilling very clear, and the administration may be more friendly to fossil fuel companies," says Yones. 
He believes this will likely hurt alternative energy stocks, but make energy ETFs like the Direxion Daily Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>) an appealing choice for traders.
<h2 class="wp-block-heading">Looking Ahead: 2025's Growth Potential</h2>
With AI driving technological advances and President-elect Donald Trump&#8216;s administration continuing its pro-fossil fuel stance, both semiconductors and energy stocks are expected to dominate investor portfolios in the year ahead.
"We expect energy and semiconductor stocks to benefit from both technology trends and government policies," Yones said.
Read Next: 
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<li><a href="https://www.benzinga.com/25/01/42918486/this-nasdaq-100-nuclear-stock-is-charging-up-for-a-clean-energy-boom">Constellation Energy, A Nasdaq-100 Nuclear Stock, Appears Ripe For Future Gains Following Calpine Deal</a></li>
</ul>
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EXCLUSIVE: Energy, Semiconductors Could Dominate Portfolios In 2025, Says Direxion CEO

Bank of America has <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/41003610/veteran-investor-mark-moss-predicts-bitcoin-to-surge-to-300k-if-donald-trump-wins-the-elec">spotlighted three sectors</a> that could benefit from the Federal Reserve&#8217;s rare dual approach of rate cuts and rising corporate profits.
What Happened: Savita Subramanian, BofA&#8217;s head of U.S. equity and strategy, referred to this situation as a &#8220;rare double whammy of stimulus&#8221; during her <a href="https://www.youtube.com/watch?v=n-vbFcslt8Q">appearance</a> on CNBC on Monday. 
She recommended investors focus on value stocks in real estate, financials, and energy sectors.
Subramanian noted that value stocks, which trade below their fundamental value, tend to outperform when profits rise and rates fall. This scenario reduces the need for hedging and encourages investment in higher-upside names.
&#8220;I think about where these assets sitting in retiree accounts and money market funds are going; I think they&#8217;re going into safe, stable income. That&#8217;s more value than growth,&#8221; she said.
Real estate benefits from significant investments in data centers, crucial for artificial intelligence infrastructure, while financials and energy sectors have improved their quality and capital returns since the last decade. 
Subramanian emphasized the appeal of high dividends in these sectors as short-term yields decline, making dividend-yielding stocks attractive for income-seeking investors.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/41081939/trump-wants-us-to-be-bitcoin-mining-capital-of-the-world-core-scientifics-move-to-buy-chip?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Wants US To Be Bitcoin Mining Capital Of The World</a>
The following ETFs are notable performers within their respective sectors. In the real estate category, iShares Core U.S. REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USRT#NYSE">USRT</a>), Schwab U.S. REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>), and SPDR DJ Wilshire REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWR#NYSE">RWR</a>) stand out as top options.
In the financial sector, SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), iShares U.S. Regional Banks ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>), and SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) have emerged as leading performers. 
For those looking into energy investments, Direxion Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>), Fidelity MSCI Energy Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FENY#NYSE">FENY</a>), and SPDR Select Sector Fund &#8211; Energy Select Sector (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) represent some of the top options.
Why It Matters: The identification of these value sectors comes at a time of significant economic and political uncertainty. Investors are currently grappling with U.S. economic uncertainty, shifts in Federal Reserve policy, and the upcoming presidential election.
The CBOE Volatility Index (VIX), a key gauge for measuring protection against <a href="https://www.benzinga.com/markets/24/09/40796352/trump-vs-harris-u-s-stock-market-faces-rising-risks-amid-economic-uncertainty-and-2024-election">stock market fluctuations</a>, has climbed to around 20, a significant rise from its 2024 average of 14.8. This surge in volatility is a typical pattern during election years, as investors weigh the market implications of policy proposals from candidates.
Steve Eisman, known for his role in <a href="https://www.benzinga.com/markets/equities/24/09/40951546/big-short-fame-investor-drops-previous-prediction-of-trump-victory-the-market-is-going-straight-">predicting the 2008 financial crisis</a>, recently withdrew his prediction of a Trump victory, adding uncertainty to market forecasts. 
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/09/41097541/amazon-apple-tesla-brace-for-supply-chain-disruptions-as-potential-east-coast-dockworkers-strike?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amazon, Apple, Tesla Brace For Supply Chain Disruptions As Potential East Coast Dockworkers Strike Nears</a></li>
</ul>
Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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BofA Highlights 3 Value Sectors Amid Fed's 'Rare Double Whammy' Of Stimulus

Direxion Managing Director Ed Egilinsky spoke to Benzinga about the sectors likely to benefit from the Federal Reserve&#8217;s potential rate cuts as well as the <a href="https://www.benzinga.com/topic/2024-presidential-election">2024 presidential election</a>.
&#8220;In the current rotation trade environment, there are several sectors that could be impacted such as the Financials, Energy, Tech, and Healthcare/Biotech,&#8221; Egilinsky said. 
<h3 class="wp-block-heading">Semiconductors &#8211; Driving The Tech Sector</h3>
Egilinsky emphasized the significant role of semiconductors in the tech sector's recent success. 
&#8220;The tech sector has continued to be a leader in 2024, with semiconductors once again outpacing the broader tech space,&#8221; he said. This trend is partly due to the excitement surrounding AI.
For traders looking to leverage this momentum, Egilinsky said, &#8220;We have seen inflows YTD with both our Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) and Direxion Daily Semiconductor Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>), as traders contemplate the next directional move.&#8221; 
These ETFs are designed to capture short-term fluctuations in the semiconductor sector, offering investors tools to capitalize on its ongoing growth.
<h3 class="wp-block-heading">Sector Sensitivity Amid Political, Economic Shifts</h3>
With Election Day on Nov. 5, Egilinsky highlighted how policy changes could affect various sectors in 2025.
&#8220;The election outcome could have a major impact on policy and should create directional volatility in areas sensitive to policy shifts such as healthcare/biotech, financials, and energy,&#8221; he explained. 
Leveraged and inverse ETFs are poised to see increased activity depending on these policy changes:
<ul>
<li>Direxion Daily S&amp;P Biotech Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LABU#NYSE">LABU</a>) and Direxion Daily S&amp;P Biotech Bear 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LABD#NYSE">LABD</a>),</li>
<li>Direxion Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>) and Direxion Daily Energy Bear 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERY#NYSE">ERY</a>)</li>
<li>Direxion Financial Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAS#NYSE">FAS</a>) and Direxion Financial Bear 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FAZ#NYSE">FAZ</a>) </li>
</ul>
Read Also: <a href="EXCLUSIVE: Which Magnificent 7 Stock Would Investors Put $1,000 In Today? 44% Of Benzinga Readers Pick This Company">EXCLUSIVE: Which Magnificent 7 Stock Would Investors Put $1,000 In Today? 44% Of Benzinga Readers Pick This Company</a>
<h3 class="wp-block-heading">Diversifying Beyond The Magnificent Seven</h3>
Egilinsky also discussed the challenge of diversifying beyond the top-performing Magnificent Seven stocks: Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
&#8220;We see many investors looking to diversify beyond the Magnificent Seven stocks,&#8221; he said. For those seeking broader exposure, the Direxion NASDAQ-100 Equal Weighted Index Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQE#NASDAQ">QQQE</a>) offers an equal weight approach to the NASDAQ 100 Index, potentially providing additional sources of returns.
<h3 class="wp-block-heading">Real Estate, Utilities: Benefiting From Rate Cut Expectations</h3>
Egilinsky also noted the performance of real estate and utilities in light of anticipated rate cuts. 
&#8220;The Real Estate and Utilities markets recently hit two-year highs as the realization that the Fed will start cutting interest rates has helped both sectors be amongst the best-performing sectors thus far this quarter,&#8221; he said.
For investors looking to ride this momentum, ETFs like the Direxion Daily Utilities Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UTSL#NYSE">UTSL</a>) and Direxion Daily Real Estate Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRN#NYSE">DRN</a>) are worth considering.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/24/08/40635736/how-americas-home-market-could-change-for-the-better-if-more-buyers-followed-charlie-mungers-lead">How America&#8217;s Home Market Could Change For The Better If More Buyers Followed Charlie Munger&#8217;s Lead</a></li>
</ul>
Image: Shutterstock

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LABU

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Direxion Daily Semiconductor Bear 3X Shares

SOXS

TSLA

UTSL

EXCLUSIVE: Beyond The Magnificent Seven — Direxion's Egilinsky Reveals Top Sector Picks

Direxion Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) closed up 1.39% higher on Monday after bouncing up from the 200-day simple moving average (SMA) on Aug. 24, amid fast-paced economic growth in developing nations, which is <a href="https://www.benzinga.com/news/large-cap/23/08/34077630/exxons-predictions-for-2050-oil-and-gas-continue-to-dominate-climate-goals-at-risk">threatening global climate goals</a>.
The energy sector has been enjoying an upswing, seeing many major players in the sector rebound course recently. If the trend continues, ERX offers leverage for sophisticated traders.
The ETF: ERX is <a href="https://www.direxion.com/product/daily-energy-bull-bear-2x-etfs">a double-leveraged fund</a> that is designed to outperform companies held in the S&amp;P Energy Select Sector Index by 200%. The index includes a variety of energy-related stocks, with two giants, Exxon Mobil Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>), making up 42.15% of its weighted holdings.
A few other top 10 names in the ETF include EOG Resources Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eog#NYSE">EOG</a>), weighted at 4.4%, ConocoPhillips (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cop#NYSE">COP</a>), weighted at 4.46% and Schlumberger NV (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>), which is weighted at 4.93% within the ETF.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle instead of long-term investments.
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here for a free trial</a>.
The ERX Chart: ERX regained support at the 200-day SMA on July 31 and on Aug. 23, Aug. 24 and Aug. 25, the ETF back-tested that area and held above it. When a stock or ETF is trading above the 200-day SMA it&rsquo;s considered to be enjoying a bull cycle and if ERX can continue to trend above the area, the 50-day SMA will cross above the 200-day, which will cause a golden cross to form.
<ul>
<li>Although the ETF is trading above the 200-day SMA, it&rsquo;s also trading in a downtrend between two parallel trend lines, which has settled ETX into a descending channel pattern. The formation is bearish for the short term, but when a stock or ETF breaks up from the upper falling trend line of the channel, it could signal a longer-term reversal to the upside is on the horizon.</li>
<li>On Monday, ERX formed a shooting star candlestick, which suggests the local top may have formed and the ETF may trade lower on Tuesday. If that happens, bullish traders want to see the ETF bounce up from the median or lower trend line of the pattern.</li>
<li>Bearish traders want to see big bearish volume&nbsp;break ERX down under the 200-day SMA, which could accelerate downside pressure.</li>
<li>ERX has resistance above at $68.55 and at $72.15 and support below at $63.47 and at $59.07.</li>
<li><img alt="screenshot_2688.png" src="https://www.benzinga.com/files/u278075/screenshot_2688.png" style="height:427px; width:760px" />Read Next:&nbsp;<a href="https://www.benzinga.com/markets/equities/23/08/34069581/fuelcell-energy-reinstates-its-focus-on-green-future-extends-deal-with-exxon-mobil">FuelCell Energy Reinstates Its Focus On Green Future, Extends Deal With Exxon Mobil</a></li>
</ul>

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Looking To Trade The Energy Sector Following Exxon's Climate Prediction? This Fund (ERX) Offers 2X Leverage

Direxion Energy Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) opened slightly lower on Tuesday, in contrast to stock futures, which were flat.
Occidental Petroleum Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oxy#NYSE">OXY</a>) printed a <a href="https://www.benzinga.com/news/earnings/23/02/31078152/whats-going-on-with-occidental-petroleum-stock-after-hours">fourth-quarter earnings miss</a> on Monday after the market close but on Tuesday, the stock was trading higher. If Occidental begins to sell off later on Tuesday, the energy sector could begin to slide in tandem, which could boost ERY higher.
ERY is a double-leveraged <a href="https://www.direxion.com/product/daily-energy-bull-bear-2x-etfs">fund</a> that is designed to inversely outperform companies held in the S&amp;P Energy Select Sector Index by 200%. The index includes a variety of energy-related stocks, with two giants, Exxon Mobil Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>) making up 43.04% of its weighted holdings.
A few other top 10 names in the ETF include EOG Resources&nbsp;Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eog#NYSE">EOG</a>), weighted at 4.49%;&nbsp;ConocoPhillips (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cop#NYSE">COP</a>), weighted at 4.52% and Schlumberger NV&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>), which is weighted at 4.80% within the ETF.
It should be noted&nbsp;leveraged ETFs are meant to be used as a trading vehicle as opposed to long-term investment.
For traders who believe there is less risk and more reward to play the energy sector as a bull, Direxion Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) is one option.
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here for a free trial</a>.
The ERY Chart: ERY reversed course into an uptrend on Jan. 27 and has made a series of higher highs and higher lows. The most recent higher high was formed on Feb. 22 at $32.03 and the most recent higher low was printed at the $26.80 mark on Feb. 14.
<ul>
<li>If ERY moves higher over the next few days, Tuesday&rsquo;s low-of-day could serve as the next higher low within the pattern. If that&rsquo;s the case, ERY is likely to form another higher high in the future.</li>
<li>ERY could be settling into a bull flag pattern, with the pole formed between Feb. 14 and Feb. 22 and the flag forming over the days that have followed. If the pattern is recognized and ERY breaks up from the bull flag on higher-than-average volume, the measured move is about 20%, which suggests the ETF could rise up toward $35.</li>
<li>Traders who are bullish on the energy sector and bearish on ERY want to see the ETF close under the 50-day simple moving average, which would negate the uptrend and the bear flag.</li>
<li>ERY has resistance above at $33.22 and $37.27 and support below at $30.16 and $25.78.</li>
</ul>
<img alt="screenshot_2214.png" src="https://www.benzinga.com/files/u278075/screenshot_2214.png" style="height:427px; width:760px" />
Read Next:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/23/02/31073573/spy-gaps-higher-ahead-of-retail-earnings-but-looks-bearish-longer-term-why-this-3x-lever">SPY Gaps Higher Ahead Of Retail Earnings But Looks Bearish Longer-Term</a>
Photo: Shutterstock

Looking To Play Exxon, OXY To The Downside? This Inverse Energy ETF Has 2X Leverage

Direxion Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) was trading slightly lower in consolidation on Tuesday, after momentum within an uptrend caused the ETF to rally over 14% between Oct. 19 and Monday.
The energy sector has been enjoying a recent bull cycle, which began on Sept. 26 when Exxon Mobil Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) bounced up off the 200-day simple moving average and reversed course into an uptrend.
<a href="https://www.bing.com/search?q=how+to+buy+XOM+benzinga&amp;cvid=263687cdbc6740739803944ba4c818ec&amp;aqs=edge..69i57j0l2j69i64.6172j0j4&amp;FORM=ANAB01&amp;PC=U531">Exxon</a> was also consolidating on Tuesday, perhaps in preparation for a move before or after the oil and gas giant reports quarterly earnings on Friday.
See Also: <a href="https://www.benzinga.com/news/earnings/22/10/29404821/how-to-trade-alphabet-googl-stock-before-and-after-q3-earnings">How To Trade Alphabet Stock Before And After Q3 Earnings</a>
ERX, a double-leveraged fund designed to outperform companies held in the S&amp;P Energy Select Sector Index by 200%, includes a variety of energy-related stocks. A few of the top 10 <a href="https://www.direxion.com/product/daily-energy-bull-bear-2x-etfs">names</a> in the ETF include:
<ul>
<li>Exxon and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>), more than 31% of its weighted holdings.</li>
<li>EOG Resources, Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eog#NYSE">EOG</a>), weighted at 3.25%</li>
<li>ConocoPhillips (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cop#NYSE">COP</a>), weighted at 3.33%</li>
<li>Schlumberger N.V. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>), weighted at 3.83%.</li>
</ul>
It&#39;s worth noting that leveraged ETFs are meant to be used as a trading vehicle as opposed to long-term investments.
Traders wishing to play the energy sector to the downside may&nbsp;consider the inverse ETF:&nbsp;Direxion Energy Bear&nbsp;2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>).
<a href="http://benzinga.grsm.io/1ih7p9hphj9p">Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial</a>.
The ERX Chart: ERX was trading in an inside bar pattern Tuesday, with all of the price action taking place within Monday&rsquo;s range. The inside bar leans bullish in this case because ERX was trading higher before forming the pattern.
<ul>
<li>Traders can watch for a breakup or down from Monday&rsquo;s mother bar on higher-than-average volume later on Tuesday or on Wednesday to gauge the future direction. If the ETF breaks up bullishly from the mother bar, a gap that exists between $69.23 and $70.80 is likely to fill.</li>
<li>The inside bar on ERX could also be the beginning of a flag formation and paired with the four-day rise beginning Oct. 19, the ETF could be settling into a bull flag pattern on the daily chart. If the pattern becomes recognized, the measured move is about 15%, which indicates ERX could soar up toward $75.</li>
<li>ERX has resistance above at $68.55 at $72.15 and supports below at $63.47 and $59.07.</li>
</ul>
<img alt="erx_oct._25.png" src="https://www.benzinga.com/files/u278075/erx_oct._25.png" style="height:427px; width:760px" />See Also:&nbsp;<a href="https://www.benzinga.com/news/22/06/27688327/if-you-invested-1-000-in-exxon-mobil-when-joe-biden-was-elected-president-heres-how-much-youd-have-1">If You Invested $1,000 In Exxon Mobil When Joe Biden Was Elected President, Here&#39;s How Much You&#39;d Have Now</a>

Want To Play The Energy Sector Bullish Into Exxon Earnings? This ETF Offers 2X Returns

Direxion Energy Bear&nbsp;2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) was trading flat on Friday after a four-day decline saw the ETF retrace 11% off the Sept. 26 high of $51.45.
The energy sector had been enjoying a long bull cycle,&nbsp;which&nbsp;began on Dec. 31 2021 and gained steam in February following Russia&rsquo;s invasion of Ukraine and the oil embargoes that followed. The cycle ended on June 8, when Exxon Mobil Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>)&nbsp;topped out at the $105.57 mark causing ERY to begin trading higher, although the road for the ETF has been rocky.
ERY is a double leveraged <a href="https://www.direxion.com/energy">fund</a> designed to inversely outperform companies held in the S&amp;P Energy Select Sector Index by 200%. The index includes a variety of energy-related stocks, with two giants, Exxon&nbsp;and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>) making up 45% of its weighted holdings.
A few other top 10 names in the ETF include EOG Resources Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eog#NYSE">EOG</a>), weighted at 4.23%, ConocoPhillips (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cop#NYSE">COP</a>), weighted at 3.59% and Schlumberger NV&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>), which is weighted at 3.44% within the ETF.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment.
For traders who believe there is less risk and more reward to play the energy sector as a bull, Direxion Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>)&nbsp;is one option.
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
The ERY Chart: ERY may be forming into a bull flag pattern on the daily chart, with the pole formed between Sept. 14 and Sept. 26 and the flag being created over the days that have followed. Conversely, ERX (the bull Energy ETF) is forming a bear flag.
<ul>
<li>If the bull flag on ERY becomes recognized, the measured move is about 40%, which indicates the ETF could soar up toward $64. If ERY begins to break up from the top descending trendline of the flag formation, it is likely to correlate with a bearish move in energy names.</li>
<li>ERY is also trading in an uptrend pattern, with the most recent higher high formed on Sept. 26 and $46.30 and the most recent confirmed higher low printed at the $39.77 level on Sept. 21. If ERY breaks up from the bull flag pattern, Wednesday&rsquo;s low-of-day at $45.21 will mark the next higher low.</li>
<li>ERY has resistance above at $46.30 and $51.75 and support below at $42.35 and $37.27.</li>
</ul>
<img alt="ery_sept._30.png" src="https://www.benzinga.com/files/u278075/ery_sept._30.png" style="height:427px; width:760px" />See Also:&nbsp;<a href="https://www.benzinga.com/general/education/22/09/29061517/if-you-invested-1-000-in-exxon-mobil-xom-stock-at-its-covid-19-pandemic-low-heres-how-much-youd">If You Invested $1,000 In Exxon Mobil Stock At Its COVID-19 Pandemic Low, Here&#39;s How Much You&#39;d Have Now</a> 
Photo: Shutterstock

Bearish On Exxon, Chevron? This Inverse ETF Tracks The Energy Sector

Direxion Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) closed up more than&nbsp;3% higher on Monday as the ETF continued&nbsp;to trend within its uptrend.
The energy sector had been enjoying another bull cycle, which began on July 14. The surge higher on Monday may have been ignited after <a href="https://nationalpost.com/pmn/news-pmn/four-killed-as-iraqs-powerful-sadr-quits-politics-loyalists-storm-complex">news</a> of increasing unrest in Iraq, OPEC&rsquo;s second-largest oil producer.
Clashes in the middle-eastern country&nbsp;erupted Monday after Shiite Muslim cleric Muqtada al-Sadr announced his resignation from politics. In response, his supporters stormed the government palace in Baghdad and gunfire broke out on the streets, leaving four dead and many wounded.
Following Russia&rsquo;s invasion of Ukraine in February, concern has grown over global oil supplies, especially heading into winter, when the commodity will become increasingly needed for heat.
The ETF: ERX is a double leveraged fund that is designed to outperform companies held in the S&amp;P Energy Select Sector Index by 200%. The index includes a variety of energy-related stocks, with two giants, Exxon Mobil Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>), making up 43.78% of its weighted holdings.
A few other top 10 names in the ETF include EOG Resources&nbsp;Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eog#NYSE">EOG</a>), weighted at 4.78%, ConocoPhillips (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cop#NYSE">COP</a>), weighted at 4.56% and Schlumberger NV&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>), which is weighted at 4.39% within the ETF.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to long-term investments.
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
The ERX Chart: ERX reversed course on July 14 and has since made a fairly consistent series of higher highs and higher lows. The most recent higher low was formed on Aug. 22 at $53.78 and the most recent confirmed higher high was printed at the $57.37 mark the day prior.
<ul>
<li>On Monday, ERX formed a candlestick with a long upper wick, which may suggest the next higher high is in and the ETF will trade lower on Tuesday. The second most likely scenario is that ERX begins to consolidate in a sideways trading pattern on decreasing volume, to gain power for another run higher.</li>
<li>ERX is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The ETF is also trading above the 50-day and 21-day simple moving averages, which indicates longer-term sentiment is bullish.</li>
<li>If ERX trades higher again over the next few days, a pullback may be on the horizon because the ETF&rsquo;s relative strength index (RSI) is measuring in at about 68%. When a stock or ETF&rsquo;s RSI nears or reaches the 70% level it becomes overbought, which can be a sell signal for technical traders.</li>
<li>ERX has resistance above at $63.47 and $68.55 and support below at $59.07 and $54.74.</li>
</ul>
<img alt="erx_aug._29.png" src="https://www.benzinga.com/files/u278075/erx_aug._29.png" style="height:427px; width:760px" />See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/22/08/28665410/cnbcs-final-trades-alphabet-and-these-3-energy-plays">Alphabet And These 3 Energy Plays Are CNBC&#39;s Final Trades</a>
Photo:&nbsp;<a href="https://www.shutterstock.com/g/Mark+Geistweite">Mark Geistweite</a>&nbsp;via Shutterstock

Global

Looking To Trade The Energy Bull Cycle? This Direxion 2X ETF Offers Trading Exposure

Direxion Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) gapped down 10.42% to start the trading day on Wednesday. The ETF was erasing some of its losses in the afternoon, trading&nbsp;about 8% lower.
The energy sector had been enjoying a long bull cycle that began&nbsp;Dec. 31, 2021 and gained steam in February following Russia&rsquo;s invasion of Ukraine and the oil embargoes that followed. The cycle ended on June 8 when Exxon topped out at the $105.57 mark, causing ERX begin to plummet from its 52-week high of $80.27.
ERX is a <a href="https://www.direxion.com/product/daily-energy-bull-bear-2x-etfs">double leveraged fund</a> that is designed to outperform companies held in the S&amp;P Energy Select Sector Index by 200%. The index includes a variety of energy related stocks, with two giants, Exxon Mobil Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>), making up 43.78% of its weighted holdings.
A few other top 10 names in the ETF include EOG Resources, Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eog#NYSE">EOG</a>), weighted at 4.78%;&nbsp;ConocoPhillips (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cop#NYSE">COP</a>), weighted at 4.56%; and Schlumberger N.V. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>), which is weighted at 4.39% within the ETF.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment.
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
The ERX Chart: ERX has been trading in a downtrend since June 8, with the most recent lower low formed on June 17 at $47.93 and the most recent lower high created at the $54.96 mark on the day that followed.
On Wednesday, ERX fell near to the last lower low and bounced up from the level, which formed a possible bullish double bottom pattern on the ETF&rsquo;s chart.
<ul>
<li>Although ERX is trading in a downtrend, the double bottom pattern may cause the ETF to form a more substantial bounce over the coming days, but other bearish signals may prove dominant.&nbsp;</li>
<li>Despite the double bottom pattern, ERX is trading in a bearish double inside bar pattern, with all of Tuesday and Wednesday&rsquo;s price action taking place within Friday&rsquo;s trading range. The double inside bar leans bearish because ERX was trading lower before forming the pattern.</li>
<li>If ERX suffers a bearish reaction to the inside bar pattern on Thursday, traders can expect another bounce&nbsp;over the next few days to at least form another lower high.</li>
<li>A&nbsp;move lower will drop the ETF&rsquo;s relative strength index (RSI) into oversold territory. ERX&rsquo;s RSI is measuring in at about 34%.</li>
<li>For traders who believe there is less risk and more reward to play the energy sector as a bear, Direxion Energy Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) is one option.</li>
<li>ERX has resistance above at $54.74 and $59.07 and support below at $50.10 and $47.25.</li>
</ul>
<img alt="erx_june_22.png" src="https://www.benzinga.com/files/u278075/erx_june_22.png" style="height:427px; width:760px" />See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/movers/22/06/27814831/whats-going-on-with-exxon-mobil-marathon-oil-bp-and-shell-shares-today">What&#39;s Going On With Exxon Mobil, Marathon Oil, BP And Shell Shares Today?</a>
Photo via Shutterstock.&nbsp;

Movers

As Exxon, Chevron Continue To Plunge, Here's A Look At The Direxion Energy Bull 2X Shares ETF Chart

There are energy ETFs that are good tools for both professional and retail traders. Two of them are the Direxion Daily Energy Bull 2x Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) ETF and the Direxion Daily Energy Bear 2x Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) ETF.
These ETFs track the index that is composed of various energy commodities. They also use leverage.
ERX is designed to move twice as much as the index does. For example, if the index gains 1%,&nbsp;ERX should be up about 2%.
Conversely, ERY is designed to move twice inversely or opposite what the index does. This is used by traders who think the index is going lower. If the index falls by 1%, ERY should be up about 2%.
It&rsquo;s a great time to be a commodities trader. The recent volatility in oil has led to huge profits for some. These two ETFs can be valuable tools to gain exposure to the energy industry.
To learn more about ETFs join the <a href="https://www.benzinga.com/premium/ideas/benzinga-trading-school/?utm_source=topnav&amp;utm_medium=topnav">Benzinga Trading School</a>.
Direxion Daily Energy Bull 2X Shares ETF (ERX)
<img alt="erx.png" src="https://www.benzinga.com/files/u344550/erx.png" style="height:313px; width:640px" />
Direxion Daily Energy Bear 2X Shares ETF (ERY)
<img alt="ery.png" src="https://www.benzinga.com/files/u344550/ery.png" style="height:400px; width:640px" />

2 Energy ETFs For Professional And Retail Traders

Fortunately for U.S. investors, most major U.S. stocks are relatively insulated from the Russia-Ukraine conflict. But while S&amp;P 500 index funds are holding up relatively well amid broad global market volatility, Direxion announced Monday it&#39;s shutting down one of the most popular Russian stock ETFs.
What Happened?&nbsp;Direxion&nbsp;will be closing and liquidating the Direxion Daily Russia Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rusl#NYSE">RUSL</a>) fund, citing &quot;increased market volatility and restrictions on Russian securities.&quot;
Direxion said the RUSL fund will cease trading on March 11, and warned investors it may continue to experience large swings in price relative to net asset value in the meantime.
Why It&#39;s Important: The leveraged RUSL fund was designed to provide 2x exposure to the MVIS Russia index. Following another 40.9% drop on Tuesday morning, the RUSL fund is now down 79.5% year-to-date.
Direxion said investors who currently own shares of the RUSL fund can choose to sell their shares on the open market before March 11 or hold them until their liquidation date on March 18. Starting on the liquidation date, Direxion will distribute cash pro rata to all remaining shareholders and the fund will terminate.
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/22/02/25785538/6-etfs-to-watch-as-russia-ukraine-crisis-heats-up">6 ETFs To Watch As Russia-Ukraine Crisis Heats Up</a> 
Benzinga&#39;s Take: The RUSL fund was hit particularly hard by the sell-off in Russian stocks due to its leveraged nature, but other Russia-exposed funds are also taking a beating in recent weeks. The VanEck Russia ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/rsx#BATS">RSX</a>) is down 64.5% year-to-date, while the Ishares Msci Russia ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erus#NYSE">ERUS</a>) is down 63.5%.
At the same time, other popular Direxion leveraged ETFs have benefitted from the Russia-Ukraine conflict and subsequent international sanctions imposed on Russia. Surging oil and gold prices have the Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) up 19.3% in 2022, while the Direxion Daily Energy Bull 2x Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) is up 64% year-to-date.

ERUS

NUGT

Market Vectors Russia ETF Trust Shares of Beneficial Interest

RUSL

RUSL Leveraged Russia ETF Plunges 40% After Direxion Announces Fund Liquidation

The fears of rising interest rates, and inflation that have been piquing investors are now starkly overshadowed by a full-blown Russian invasion of Ukraine.&nbsp;
President Joe Biden and U.S allies have imposed sanctions on Russia including the pausing of a key natural gas pipeline between Germany and Russia; financial restrictions on Russian oligarchs and banks; as well as an end to the trading of Russia&rsquo;s government bonds on exchanges in the U.S. and other allied countries.&nbsp;&nbsp;
What Happened: President Vladimir Putin ordered Russian forces to invade Ukraine early Thursday morning in a massed assault by land, sea&nbsp;and air signaling the largest attack on one European state&nbsp;since World War II.&nbsp;
Western leaders warned that even harsher punitive measures will be unleashed in the event Russia moves further into Ukraine.&nbsp;
Why It Matters: Russia is an energy hub for Europe, supplying 40% of Europe&rsquo;s energy&nbsp;and 35% of the continent&#39;s&nbsp;gas.&nbsp;
Oil prices have spiked above $99 for the first time since 2014, stoking further inflation pressures at a time when growth in the U.S. CPI is at a 40-year high.&nbsp;
If more sanctions are imposed, it could lead to potentially less oil on the market if the country&rsquo;s energy sector is targeted.&nbsp;
Other countries have said the strategy employed by the Organization of the Petroleum Exporting Countries Plus (OPEC+), to boost oil production gradually is enough to balance the market and there is no need for a hurry to ramp up production, making leveraged energy ETFs&nbsp;interesting plays.&nbsp;
We&rsquo;ve gathered a list of them here:&nbsp;
Direxion Daily Energy Bull 2X Shares ERX&nbsp;(NYSEARCA: <a href="https://www.google.com/finance/quote/ERX:NYSEARCA">ERX</a>) Direxion Daily Energy Bull 2X Shares creates two times leveraged position in the Energy Select Sector Index. Expense ratio of ERX is 1%. Price action: 35.51% higher year-to-date.&nbsp;
Direxion Daily S&amp;P Oil &amp; Gas Exploration &amp; Production Bull 2X Shares&nbsp;(NYSEARCA: <a href="https://www.google.com/finance/quote/GUSH:NYSEARCA">GUSH</a>): The Direxion Daily S&amp;P Oil &amp; Gas Exploration and Production Bull 2X Shares offers two times exposure to the daily performance of the S&amp;P Oil &amp; Gas Exploration &amp; Production Select Industry Index. The expense ratio of GUSH is 1.14%. Price action: 16.72% higher year-to-date.&nbsp;
MicroSectors Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETN&nbsp;(NYSEARCA: <a href="https://www.google.com/finance/quote/OILU:NYSEARCA">OILU</a>): The MicroSectors Oil and Gas Exploration &amp; Production 3X Leveraged ETN is linked to three times leveraged performance of the MicroSectors Oil &amp; Gas Exploration &amp; Production Index. The index provides exposure to the large-capitalization companies that are domiciled and listed in the United States and that are active in the exploration and production of oil and gas. OILU charges investors 95 bps in annual fees and expenses. Price action: 52.76% higher year-to-date.
MicroSectors U.S. Big Oil Index 3X Leveraged ETN&nbsp;(NYSEARCA: <a href="https://www.google.com/finance/quote/NRGU:NYSEARCA">NGRU</a>): The MicroSectors U.S. Big Oil Index 3X leverages exposure to the Solactive MicroSectors U.S. Big Oil Index, which is equal-dollar weighted and provides exposure to the 10 largest U.S. energy and oil companies. The expense ratio is 0.95%. Price action: 55.49% higher&nbsp;year-to-date.&nbsp;

General

GUSH

OILU

4 Inverse Energy ETFs To Watch As Russia Invades Ukraine

Direxion Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>) shares experienced unusual options activity on Thursday. The stock price moved down to $24.72 following the option alert. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-10-15</li>
<li>Strike Price: $30.00</li>
<li>Volume: 753</li>
<li>Open Interest: 1396</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Using These Strategies To Trade Options</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Options

Understanding Direxion Energy Bull 2X Shares's Unusual Options Activity

On Thursday, shares of Direxion Energy Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERX#NYSE">ERX</a>) saw unusual options activity. After the option alert, the stock price moved down to $24.72. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-10-15</li>
<li>Strike Price: $30.00</li>
<li>Volume: 753</li>
<li>Open Interest: 1396</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. 
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
Contracts that are "out of the money" are also indicative of unusual options activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Using These Strategies To Trade Options</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Even with the benefit of some recent upside, the energy sector will rank as the worst-performing in the S&amp;P 500 when 2020 draws to a close on Thursday.
<h3>What Happened</h3>
The Direxion Daily Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) has taken its share of lumps this year due to the sector&#39;s slide. ERX, which attempts to <a href="https://www.direxion.com/product/daily-energy-bull-bear-2x-etfs">deliver double the daily</a> returns of the Energy Select Sector Index, is down almost 92% year-to-date.
So severe was the oil crash induced by the first wave of the coronavirus pandemic, that extreme volatility forced <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/10/18006933/a-beaten-up-energy-etf-may-win-either-way-on-election-day">a reduction in ERX&#39;s leverage</a>, which is to say this was once a triple-leveraged exchange traded fund.
<h3>Why It&#39;s Important</h3>
However, there are inklings some analysts and market observers believe 2021 will be kinder to traditional energy stocks. Whether its bets that travel demand will start to recover, the global economy will shake off the effects of the pandemic, value equities will come back into or simply that the energy sector can&#39;t perform much worse in the new year than it did in 2020, ERX has some momentum.
&ldquo;I think 2021 would be better than 2020. That said, if you look globally, the coronavirus pandemic is still raging. We do have some vaccine announcements, but they should take some time to roll out,&rdquo; says <a href="https://www.morningstar.com/articles/1015140/what-next-for-oil-and-gas-companies">Morningstar analyst Allen Good</a>. &ldquo;We anticipate a continued economic recovery as we move through 2021. We&#39;d estimate that this results in an improvement in commodity prices throughout the year. However, that does mean that it&#39;s still going to be a rather tough year for oil and gas groups, particularly the integrated oils.&rdquo;
That does of reality on integrated oil companies is worth acknowledging with ERX because the fund&#39;s underlying index is dominated by the likes of Chevron (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>) and Exxon Mobil (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>).
<h3>What&#39;s Next</h3>
Exxon&#39;s ability to engineer a credible rebound that revolves around more than asset sales and dividend protection could be the key to ERX&#39;s fate over the course of 2021. At the very least, the former Dow component enters the new year cheap.
Exxon &ldquo;is particularly cheap. It&#39;s sold off in response to its greater investment plans and its investments in oil and gas,&rdquo; notes Good. &ldquo;However, as I mentioned, I think this actually creates an opportunity then for differentiation a few years down the road as the underinvestment does ultimately lead to higher oil and gas prices as well as refining margins.&rdquo;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Think The Energy Sector Can't Get Any Worse? This Leveraged ETF Is For You

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The Energy Select Sector Index is lower by 51.15% year-to-date, confirming that 2020 has been a brutal year in the oil patch.
<h3>What Happened</h3>
Weakness in that benchmarks has wrought havoc on leveraged exchange traded funds, including the Direxion Daily Energy Bull 2X Shares (NYSEARCA: ERX) with pressure on oil equities intensifying amid slack demand caused by the coronavirus pandemic.
Adding to the problems for ERX and friends is the specter of a blue wave &ndash; the scenario where former Vice President Joe Biden wins the White House and Democrats take the Senate while maintaining control of the House.
<h3>Why It&#39;s Important</h3>
ERX attempts to deliver <a href="https://www.direxion.com/product/daily-energy-bull-bear-2x-etfs">double the daily returns</a> of the aforementioned Energy Select Sector Index, meaning it&#39;s been an awful time to consider the geared ETF.
Compounding the woes of ERX is that the blue wave, assuming it arrives, is nearly universally viewed as <a href="https://www.benzinga.com/government/20/08/17202951/3-alternative-energy-etfs-for-a-biden-white-house">a boon for renewable energy stocks</a> while being a potential nail in the coffin of fossil fuels producers. Alas, sometimes conventional wisdom isn&#39;t all it&#39;s cracked up to be. In fact, ERX may be in a can&#39;t lose situation following Election Day.
&ldquo;If Trump wins, fracking is here to stay, and some of the significant inflows into green strategies will have to reverse,&rdquo; opines <a href="https://www.rareviewmacro.com/">Rareview Macro</a> founder Neil Azous in a recent note. &ldquo;If Biden wins and fracking is banned, crude oil should trade significantly higher on less supply.&rdquo;
<h3>What&#39;s Next</h3>
Then there&#39;s economic reopening to consider. Should the global economy reopen in force on the back of positive vaccine news, shorts sellers engaged with energy names could be forced to cover.
&ldquo;If the world reopens because the virus fades, the factor exposure short energy on any time horizon in a model will be offsides and see significant short covering,&rdquo; adds Azous.
And recent political history is worth remembering. Clearly, fossil fuels have seen better days, but renewable energy stocks are thriving while Trump occupies the Oval Office. The reverse was true under President Obama. If that pattern repeats, ERX could offer some near-term upside even Biden emerges victorious on Nov. 3.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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Politics

A Beaten Up Energy ETF May Win Either Way On Election Day

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Dow components Exxon Mobil (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>) step into the earnings confessional today, potentially bringing with them increased activity for leveraged energy sector exchange-traded funds.
<h3>What Happened</h3>
In other words, Friday could be one of the ideal days for traders to embrace the Direxion Daily Energy Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) and the Direxion Daily Energy Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>).
The bullish ERX looks to deliver <a href="https://www.direxion.com/product/daily-energy-bull-bear-2x-etfs">double the daily returns</a> of the Energy Select Sector Index while the bearish ERY seeks performances that are double the daily inverse returns of that benchmark.
<h3>Why It&#39;s Important</h3>
With 2020 likely to go down as one of the worst and most volatile years on record for the energy sector, it&#39;s not surprising that Wall Street is expecting losses from both Exxon and Chevron. Analysts expect a June quarter loss of 62 cents a share out of Exxon and a loss of 93 cents from Chevron.
Whatever the results are, it will be relevant to traders deploying ERX and ERY today because the Energy Select Sector Index devotes 46% of its combined weight to the two giants of the U.S. oil industry.
One of the Exxon-specific issues that could put ERX and ERY in play today is the company&#39;s commentary on its dividend. Exxon, which yields north of 8%, doesn&#39;t generate enough cash flow to cover the payout, but it also appears loath to cut the dividend.
The company &ldquo;is preparing deep spending and job cuts, according to people familiar with the matter, as it fights to preserve a 8% shareholder dividend with a multi-billion-dollar quarterly loss looming,&rdquo; <a href="https://www.reuters.com/article/us-exxon-mobil-cuts-exclusive/exclusive-exxon-prepares-spending-job-cuts-in-last-ditch-move-to-save-dividend-idUSKCN24V2RP">according to Reuters</a>.
Exxon&#39;s annual dividend expense is $15 billion, assuming no alterations are made.
<h3>What&#39;s Next</h3>
One day doesn&#39;t make a trend, but if Thursday&#39;s action is any indication, traders are warming to the idea of ERY being the way to go today. The double-leveraged bearish energy ETF jumped 7.72% yesterday on nearly double the average daily volume while the bullish ERX slumped 7.59%.
&ldquo;Aside from the typical interest in sources and uses of cash (and in particular, Chevron&rsquo;s ability to sustain its dividend), we will be interested to hear more on activity levels in the Permian Basin and Williston Basin, as these are the primary U.S. operating regions for Chevron&rsquo;s pending acquisition target Noble Energy,&rdquo; <a href="https://www.barrons.com/articles/exxon-mobil-chevron-earnings-preview-51596142685?mod=hp_DAY_12">notes CFRA analyst Stewart Glickman</a>.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Earnings

Pre-Market Outlook

Big Day Looming for These Thrilling Energy ETFs

Direxion is dramatically altering the time frame for shifting 10 of its geared exchange traded funds to double from triple leverage, saying that those changes will go into effect after the close of U.S. markets on March 31 after originally being slated to be implemented on May 19.
Citing <a href="http://www.direxion.com/press-release/direxion-changes-objectives-of-ten-leveraged-funds-to-address-extreme-market-conditions-while-also-closing-eight-funds-due-to-limited-interest-since-launch">an unprecedented spike</a> in market volatility at the hands of the COVID-19 pandemic, Direxion said last week it planned to reduce the daily leverage exposure on 10 well-known ETFs, including the Direxion Daily Gold Miners Index Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) and the Direxion Daily Gold Miners Index Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>), to 2x from 3x.
&ldquo;Effective after market close on March 31, 2020 each Fund&rsquo;s investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable,&rdquo; <a href="http://www.direxion.com/">said the issuer in a statement</a> released Friday after the market close. That timeline has now been moved up substantially after the firm received expedited approval from the SEC.
Other Funds Affected
In addition to the aforementioned NUGT and DUST, which are two of the most heavily traded leveraged ETFs in the U.S., the small-cap counterparts &ndash; Direxion Daily Junior Gold Miners Index Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnug#NYSE">JNUG</a>) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSE&nbsp;JDST) are also being reduced to double leverage.
Today, JNUG <a href="http://www.direxion.com/press-release/direxion-daily-gold-miners-index-bull-3x-shares-and-direxion-daily-junior-gold-miners-index-bull-3x-shares-underexposed-at-3-27-2020-market-open">traded with 260%</a> leverage instead of the usual 300%.
At a time of <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/03/15686241/leverage-bullish-oil-etn-gets-an-upsizing-as-crude-prices-falter">increased duress in the oil patch</a>, Direxion will ratchet the Direxion Daily Energy Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) and the Direxion Daily Energy Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) down to 2x status. The same treatment is being applied to the ultra-volatile Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gush#NYSE">GUSH</a>) and the Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/drip#NYSE">DRIP</a>).
The Direxion Daily MSCI Brazil Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brzu#NYSE">BRZU</a>) and the Direxion Daily Russia Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rusl#NYSE">RUSL</a>) are the other affected funds. All 10 products will see &ldquo;3X&rdquo; dropped from their names with &ldquo;2X&rdquo; moving in.
Wild Moves
At a times of elevated volatility, leveraged ETFs can deliver extreme moves in rapid fashion, testing uninitiated traders&#39; appetite for risk. For example, both the bullish JNUG and bearish JDST are saddled with losses this month to the tune of an average drop of 85.5%.
Geared ETFs use derivatives to obtain leverage, but that leverage isn&#39;t obtained on a dollar for dollar basis. Rather, if a geared fund has $100 million in assets, it <a href="http://www.direxion.com/wp-content/uploads/2012/09/Understanding_Exchange_Traded_Funds.pdf">must maintain $300 million</a> worth of exposure to the index it tracks.
In volatile markets, the need for daily rebalancing can hinder outcomes because a levered fund may increase exposure to an index in advance of a large decline and an inverse leveraged ETF can reduce exposure in advance of big rally.

Emerging Markets

Emerging Market ETFs

BRZU

DRIP

DUST

JDST

JNUG

Direxion Is Accelerating The Shifts Of 10 ETFs From 3x Leverage To 2x Leverage As Volatility Remains High

First, the necessary disclaimer that leveraged exchange-traded funds should not be held for weeks or months on end. The long a leveraged ETF, the odds increase it will deviate from its underlying investment objective, potentially leaving traders with unpleasant surprises.
There are times when some leveraged ETFs soar for extended periods of time and that has been happening this month for a trio of previously downtrodden <a href="https://www.benzinga.com/trading-ideas/long-ideas/19/09/14439945/bad-timing-roasts-traders-in-this-leveraged-energy-etf">leveraged energy funds</a>.
Prime example: the Direxion Daily Natural Gas Related Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gasl#NYSE">GASL</a>). GASL tries to <a href="http://www.direxion.com/products/direxion-daily-natural-gas-related-bull-3x-etf">deliver triple the daily returns</a> of the ISE-Revere Natural Gas Index. There&#39;s a plain vanilla ETF that&#39;s linked to that index and that fund has been <a href="https://www.benzinga.com/news/18/12/12901723/5-worst-etfs-of-2018">a value destroyer</a> for a decade or more, but every dog has its day.
Even with a loss of nearly two-thirds of a percent on Monday, GASL is up more than 30% this month, making it the best-performing leveraged ETF in the Direxion suite.
Hot on GASL&#39;s tail is the Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gush#NYSE">GUSH</a>) another volatile that ebbs and flows with oil prices. Thanks to an attack on major Saudi Arabian oil assets <a href="https://www.benzinga.com/trading-ideas/long-ideas/19/09/14432769/3-etfs-for-what-could-be-a-wild-day-in-the-oil-patch">earlier this month</a>, ETFs like GASL and GUSH are soaring in September.
GUSH, which attempts to deliver <a href="http://www.direxion.com/products/daily-sp-oil-gas-exp-prod-bull-3x-shares">triple the daily returns</a> of the S&amp;P Oil &amp; Gas Exploration &amp; Production Select Industry Index, is higher by almost 27% month-to-date. Reminding investors just how volatile exploration and production stocks can be, GUSH plunged more than 20% last week on news that the Saudis may be able to restore some of that lost production quicker than expected.
And speaking of volatility, GASL and GUSH have been the most volatile leveraged bullish ETFs in Direxion&#39;s stable over the past 30 days and it&#39;s not even close.
Docile compared to GASL and GUSH, the Direxion Daily Energy Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) is up just over 23% this month. That fund tries to deliver triple the daily returns of the Energy Select Sector Index, making it a levered play on integrated oil companies.
ERX is indeed docile compared to the other funds mentioned here as it is not among the 10 most volatile Direxion bullish leveraged ETFs this month.
What&#39;s interesting about ERX, GASL and GUSH this month, aside from their returns, is that issuer data indicate there have not been notable inflows into those products. Rather, recent data confirm some of their bearish equivalents have been adding assets, perhaps a sign traders are betting energy ebullience will be short-lived.
Related Links
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/09/14469023/uncovering-the-marvel-of-mid-cap-etfs">Mid-Cap ETFs Rock</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/09/14469025/7-etfs-joining-the-spdr-lineup-of-cheap-core-funds">7 Cheap SPDR ETFs</a>

GASL

3 Leveraged ETFs That Are On Fire In September

Geopolitical headlines are one of the ideal catalysts for trading leveraged exchange-traded funds and traders looking to tap <a href="https://www.benzinga.com/trading-ideas/long-ideas/19/09/14432769/3-etfs-for-what-could-be-a-wild-day-in-the-oil-patch">geared energy ETFs Monday</a> got the volatility they were looking for.
<h3>What Happened</h3>
Oil prices enjoyed one of their best intraday performances in decades following drone strikes on Saudi Arabian oil assets that knocked 5% of the world&#39;s daily supply offline. This was good news for traders using bullish leverage oil funds and great news for those that had the foresight and fortitude to hold such products over the weekend.
Conversely, Monday was a forgettable day for traders that held inverse energy ETFs, such as as the Direxion Daily Energy Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) over the weekend.
<h3>Why It&#39;s Important </h3>
ERY is designed to <a href="http://www.direxion.com/products/direxion-daily-energy-bull-3x-etf">deliver triple the daily returns</a> of the Energy Select Sector Index. The weekend&#39;s events in Saudi Arabia notwithstanding, ERY was a risky hold into the weekend because the fund was already down about 21% this month with energy stocks perking.
The triple-leveraged bearish fund was punished Monday, losing 10% on more than triple the average daily volume. That will happen to a leveraged ETF where the underlying index allocates about 43% of its combined weight to Exxon (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>),<a href="https://investorplace.com/2019/09/surging-oil-prices-sent-stocks-lower-monday-with-dow-slipping/"> yesterday&#39;s two best-performing Dow stocks</a>.
Making matters worse is that for the 10 days ending Friday, Sept. 13, ERY took in nearly $5 million in new assets, good for the ninth-best total among <a href="http://www.direxion.com/products/direxion-daily-energy-bull-3x-etf">all Direxion ETFs</a>. In other words, some traders got caught making the wrong bets.
<h3>What&#39;s Next </h3>
With the benefit of hindsight, it is clear that the Direxion Daily Energy Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) was the geared energy ETF to hold into the weekend. Interestingly, there has been much in the way of noteworthy inflows or outflows from ERX as of late, but that could change after the fund surged 10.30% Monday on more than triple the usual volume.
If U.S. oil producers look to pick up some of the slack from the lost Saudi output and if that move doesn&#39;t force prices lower, ERX could have some legs as a winning bet over the near-term.
Related Links
<a href="https://www.benzinga.com/markets/cannabis/19/09/14432382/a-cannabis-etf-looking-for-redemption">This Cannabis ETF Looks For Undervalued Stocks</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/09/14432366/3-etfs-to-consider-for-the-value-resurgence">Bet On Value With These ETFs</a>

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