To The Moon

Last week brought sharp swings in US stocks. The Nasdaq fell around 5.5% in a single session, with semiconductor stocks hit especially hard. Yet two Prestige traders booked profits from inverse ETFs and volatility-linked products.

When markets tumble, where can traders find opportunities beyond betting on rising prices?

Quick recap of last week's rankings:

• Prestige Top 3: 🥇@肯特岗小镇做T家 , 🥈@Mighty Ang , 🥉@IcyBao

• Elite Top 3: 🥇@YOOGIN , 🥈@Godz11la2010, 🥉@neo28

• Team Top 3: 🥇春秋, 🥈Kent Ridge Feeders, 🥉DCA

Full leaderboards at the end 👇

🏆 Top Trader Breakdown | Diadem

📊 Trading Performance

• Prestige #9: Weekly time-weighted return of 5.94%, with a maximum drawdown of 5.57%.

• APPX: Approximately $34.4K in profit. $Tradr 2X Long APP Daily ETF(APPX)$

• SOXS, LITZ and SNDQ: Around $49.0K in combined profit from three inverse ETFs. $Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ $Tradr 2X Short LITE Daily ETF(LITZ)$ $Tradr 2X Short SNDK Daily ETF(SNDQ)$

🔍 Trade Breakdown

01 | Tech stocks tumbled. How did he catch a standout winner?

On 5 November, the Nasdaq slid around 5.52%, while AppLovin (APP) surged about 31% after strong earnings. Diadem's largest realised profit came from APPX, with two potential drivers:

• Earnings catalyst: APP's Q3 revenue grew 55% year over year, while net income rose 72%, supporting the share price.

• Leveraged exposure: APPX targets twice APP's daily return. If Diadem held it before the rally, APP's jump could have translated into a larger ETF gain.

💡 Even when a sector is under pressure, companies with strong earnings can still outperform.

02 | Semiconductors sold off. How could he profit from falling prices?

SOXS, LITZ and SNDQ also appeared among Diadem's top profits. These inverse ETFs aim to rise when their underlying stocks or indices fall, based on daily returns.

• Sector level: SOXS targets three times the inverse daily return of a semiconductor index, so a chip-sector sell-off can work in its favour.

• Individual stocks: LITZ and SNDQ target twice the inverse daily returns of Lumentum and Sandisk, respectively, offering ways to trade declines in specific stocks.

The pattern suggests a possible approach: looking not only for stocks that might rise, but also for those showing relative weakness.

💡 Inverse ETFs offer a way to trade falling prices without directly short-selling stocks. But leverage also magnifies risk, and daily multiples do not translate into the same multiple over a full week.

🏆 Top Trader Breakdown | Keanho

📊 Trading Performance

• Prestige #10: Weekly time-weighted return of 5.69%, with a maximum drawdown of 1.38%.

• VIXY: His largest profit, at approximately $15.7K. $ProShares VIX Short-Term Futures ETF(VIXY)$

🔍 Trade Breakdown

01 | Fear surged. Why did VIXY become his top profit contributor?

On 5 November, the VIX jumped from 16.61 to 28.18, a rise of around 69.7% in one day.

• Rising fear: Often called the "fear gauge," the VIX reflects expected volatility in the S&P 500 over the next 30 days. A sharp rise signals expectations of bigger market swings.

• Trading opportunity: Keanho's largest realised profit came from VIXY, which is linked to short-term VIX futures and may benefit when volatility expectations rise.

💡 Opportunities are not limited to predicting whether stocks will rise or fall. Changes in expected market volatility can also be traded—an approach known as volatility trading.

02 | Why can gains driven by fear fade so quickly?

By 6 November, the VIX had eased to 25.64 from 28.18 the day before. Market sentiment can shift quickly, making timing especially important in volatility trading.

• Not a direct VIX tracker: VIXY gains exposure through VIX futures, so its performance does not necessarily match the VIX index.

• Risk and exit timing: As fear fades, VIXY can fall sharply. Taking profits during a volatility spike may help limit the impact of a later pullback, although Keanho's exact exit timing is unknown.

💡 Catching a surge in market fear is one thing. Managing risk before sentiment reverses is another.

*This analysis is based only on publicly available Trade to Win information and does not constitute investment advice.

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