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VOLATILITY DECAY
>VOLATILITY DECAY
VOLATILITY DECAY

To give you a tiny sip of how real it is, even in the short term, today I bought KOLD while BOIL was 2.18. Obviously, BOIL drops, KOLD rises, and vice versa, *but*, as the day moved through the relatively wide crabs between 2.23 and 2.10, it started having to get farther and farther below 2.18 for my position to go green. Now, just imagine how this functions over longer holds.

Perhaps this will provide a useful nugget for anyone else dabbling in leveraged/inverse/etc. ETFs, as they are more complex than just 1:1, and that includes relations with the underlying assets.