I have heard of this strategy being used when holding leveraged 2x or 3x ETF's over a longer time period, like 4-6 weeks or longer when decay is more impactful. I have never applied this strategy myself.
I typically do not hold a leveraged ETF for more than 10 days to two weeks, a time period where the decay is not as impactful.
I believe DUMA has talked about this strategy a time or two on his board. GLTY
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