Gervase Eline Comment On Regulatory Notice 22-08
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It's especially important regulators hear from you in your own words. Please use the body of this email to customize your response.
Dear Sir,
I shouldn't have to go through any special process like passing a test before you can invest in public securities,
including cryptocurrency funds. Please leave it up to individual investors to decide if they want to invest in cryptocurrency funds and assume their risks.
I would like to express my displeasure at the elitist idea of limiting my use of leveraged and inverse funds. These funds play an important part of my portfolio, as each gives me an instant diversified basket of stocks, and are much easier to use than options, which really are not practical for the small investor or trader.
First off, the amount of corruption in today's market is unbelievable. To see FINRA, an organization that is supposed to protect the integrity of the market; come out with baseless claims to try and keep the public from arguably the safest investment opportunities the market has to offer, definitely seems as if there's an agenda that's not in the best interest of the American people.
I gained over $1000 on my DIS today. It will cost me $274 to protect 100 sh (about 1/4) of my position with a put option for next week. That's costly.
FINRA should advocate my right to buy & sell options on a fractional basis. At a cost of $2.74 a sh I should be able to buy a fractional put for as many shares as I can afford.
Let us invest our monies as we see fit. I want to be able to manage my own portfolio. No one cares more about my interest than me.
If regulators are really concerned about helping retail investors manage their risk in the market they should make it easier to buy fractional shares and fractional options. Let's say a retail investor has 1 position in her account. She bought 100 shares of LABU @ $4.93. It rose to $5.93 today so she's gained $100. LABU is the 3x ETF for Biotech Bull. The best protection vs an LABU fall is LABD (Biotech Bear). She can only afford $10 right now in that effort. Allow her to buy 0.10 sh of LABD for $6.10. Now she has a see-saw portfolio. If LABU falls LABD will rise reducing her risk.
I OPPOSE RESTRICTIONS TO MY RIGHT TO INVEST.
I have used both leveraged and inverse funds in the past. They have been especially useful as a hedge against adverse market conditions as well as an enhancement to favorable conditions. I am aware of both their risks and rewards. I view Inverse funds as a type of 'health insurance' for the portfolio in uncertain times; you hope you don't have to use it, but nice to have if you need it. Who doesn't need health insurance?