The Smarter Way to Trade SK Hynix Nobody Is Talking About (ft. Leverage Shares)

For those that are unfamiliar, you know, let's let's let's give a thank you to Paul for making the memory trade tradable. Uh Paul spent decades in asset management, been a pioneer here, and he is the chief revenue officer at themes ETFs, the team behind leverage shares. If you were here for the SpaceX day, you know this crew. They launched SPCH, SSPC, and did over a half a billion dollars in volume just the first day. And now they're doing it again for SKH Heinix with two brand new funds. Please welcome to the stage, Mr. Paul Marino. Paul, how are we doing >> great, man? How are you? >> I'm living the dream. I've been running here for the last fiveish hours. Um, it's been a lot of fun. We've had uh 20,000 plus people tune in to this. We've got 100ish or so on YouTube as well, which is so fun. Appreciate the YouTube chat that's been running all day today. People are super excited about this and I know just like SpaceX, people are going to be ready to go to trade it when these products come next week. So, what can you tell us about these upcoming products? >> Well, let me give you an update on the date. So, as of right now, just based on regulators and the exchanges, we're set to launch on Tuesday the 14th at 4:00 a.m. Uh, if anything changes, we'll get out with notes. So, check the website either, you know, leverageshares.com or or themes.com and we'll have updated news. But as of right now, we're set to launch both products on Tuesday the 14th at 4:00 a.m. Eastern time. >> 4 a.m. Eastern time. Evan, that's when you wake up in the morning, isn't it? >> Feel like that's when he's usually starting to tweet a little bit about the markets here. So, yeah, the products are going to be coming out. What else should we know about these products? Because it's not a 2x long and 2x short. It's a 2x long and a 1x short. >> Yeah, we saw a tremendous amount of volume and volatility in SpaceX. as you mentioned it in its first week it was the most traded ETF in the history of ETFs and so we're really excited because what that shows us is that there's a lot of interest in IPOs and and issues that are coming to the market in the United States for the first time and while SKH high is an established business and an established country uh company been around since 1986 in uh South Korea it's trading for the first time as an ADR in US markets today. So we know there's a lot of excitement around that. Then you take a step forward and look at the memory trade. So much interest in memory. Uh it's one of the three largest memory companies uh in on the globe. So we think there's going to be a lot of volume there too. So 2x long on the upside. We think there's going to be a tremendous amount of of people retail traders institutions that are looking to get that leverage exposure through an ETF. So we're really excited about that long side. But on the downside, what we realized is doing a 1x provides a hedge for people that are either already in the IPO and looking to hedge that on a one-time basis or if you're if you're really bullish on this and you're in the 2x, you you wouldn't want to like offset that with a 2x short. So, we felt like the 1x was the proper hedge that could be used for these volatile names to keep people long yet hedge if it gets to a level where people are getting concerned and they want to hold their position but maybe just you know put in a hedge position to the downside. >> Yeah, that makes sense to me. Let's talk a little about the underlying stock here SKH Heinix. What's your take on it and this massive memory trade and igopoly that we're seeing? Yeah, from everything that we research, from all of that we hear, memory is the biggest component uh and one of the most scarce components uh in the AI trade. So there's just not enough of it. Uh so you know there's three major companies SKH goes across every single piece of memory. Uh and so we think it's going to we have it has a lot of legs moving forward. So we're bullish on memory um you know for the foreseeable future. Uh, but again, when something comes to the market for the first time, just like I said with SpaceX, you know, it takes off like a rocket ship. The last I looked before I came on here, I think it was trading 15% above its listed price today. So, really good movement moving up. Uh, but that said, generally speaking, all that enthusiasm, that momentum, the fear of missing out happens with new listings and then there's a settling off period and then there's a period where maybe this thing settles back down a little bit. So, uh, we're going to wait and see how that plays out. All that said, lots of interest, lots of volatility when we're dealing with leverage products. You know, that's good for us. So, we think we're going to give retail investors and institutions that uh that vehicle that they need to gain leverage to the upside and also hedge themselves to the downside should they see a moment where they think that's appropriate. >> I I actually really like the downside being single. Uh personally I feel like for me it's something that I I would utilize more often. It gives me a option that is I don't have to use puts but I don't have to really even worry about leverage there, right? And so it does kind of fill in a little bit of a hole I think for retail that are looking at something saying I think this is overvalued. I don't want to play it with puts or you know leverage or pieces like that. I just want to be able to muck money on this going down. >> Yeah, I agree with you. I I think it makes a lot of sense across the board. I think, you know, a lot of times when people look at these products, they're just interested in the leverage, the leverage, the leverage, maximizing the return. On the short side, personally, for almost every long position that I hold in an underlying stock, I would love to have an option like this for when things are getting a little bit long in the tooth and I don't want to sell that out. I want to continue to hold that position. You know, you you guys know me for a long time. Like personally, I I I'm a big fan of some of the the um the uh crypto treasury names, and I would love to be able to not have to ever sell those, but to be able to like hedge them. So, my I agree with you 100%. And again, in a volatile name like this that's taken off in the US for the first time, I love having that one-time short so that I could hedge a position without having to worry about, you know, leverage on the downside. >> For sure. and and you've launched a lot of products, but you mentioned SpaceX being the most successful, right, of all time really on that first day. What did it teach you in terms of you know the launch you're doing now around SKH Highix? >> Well, be who you are number one. Communicate the message clearly. Be honest and transparent about the release. Like don't try to play any games to try to get some kind of advantage. like you know we we have great partners uh with our regulators and our exchanges and all we have to do is communicate that clearly to the people that are interested in these products and so that's number one. Number two I think cost matters. I think you you you have to have a lowcost option in the space. You know to say that fees don't matter just because you're not holding it very long that doesn't fly with me. You know you you want to be able to have a fee that aligns with what's good for the client and what also works for us. And I think we're perfectly priced at 75 basis points to be able to do that. Uh and then the last but not least, we've now been in this space for, you know, a year and a half plus proven that we can manage these strategies to what their uh 200% up or 200% down is uh very very well. And so I think we're resonating with retail audiences and I think that's one of the reasons why we had so much success. >> Yeah, it does make sense. And you know, I'm sure you're you're familiar with this, but you know, there's a lot of issuers that are launching, racing to launch, you know, 2x products here across the board. How do you actually, you know, how do you separate yourself from the pack? >> Well, again, all those things that I just said, we're we're an in-house management team, so we do all the management ourselves. We're low cost, so you don't have to worry about it, you know, the the fee with us. We're going to be the the lowest or or close to the lowest out there. >> 0.75 or what's >> 75? uh and uh we've got a lot of experience in the space. So one of the things that people always talk about is tracking like are you providing that 200% daily return uh day in day out because remember these things are reset. So every day you got to look at that NEV and then you got to track whether or not we're providing that and we are so um I think those are the reasons again also we we do everything in house. We're a holistic firm. Um we invest in ourselves and so in our promotions, in our, you know, in our uh advertisements, in the content that we create, we're providing value, hopefully providing value to uh the community, to you, to all of our partners. And so, as long as we continue to do that and play the game, right, uh I think that will resonate with with investors and they'll keep coming back to us >> for sure. Evan, I'm going to bring you in in just a minute. I had one more question real quick for Paul and that is for somebody that's watching this live stream right now and I see our YouTube audience is actually going up here. Love to see it and they've never traded or bought a single stock ETF before. What are the things that they should know about, you know, SKX, SKHZ before they press buy? Yeah. One, we're going to give you 200% of the daily NEV from the prior day, right? So that there's a difference when you're trading it. If you make your first trade intraday and you're looking at it to go tick for for, you know, with the ticker 100% to 100%, it's not going to work that way because again, it's based on the previous days NAV close. That said, it will track very closely to the underlying stock. That's number one. Number two, in choppy markets, okay, there's a little bit, you know, you got you got there's a little bit of decay because if it goes, you know, up 5% one day, down 5% the next day, you're not going to be even to where that stock was. So, you really got to manage that on a day-to-day basis. This is not a set and forget. It's like, don't buy this and think you're going to come back to the screen six months later and and see what it's doing. Like, you really have to look at it on a daily basis. Have a trading process around them. You know, when you enter into them, know what you want to the upside or downside, depending upon which one you're playing. And then when you hit that, you know, be willing to take that profit. Uh, know what you're willing to take as a loss because sometimes a trade could go against you. a piece of news can come out and and the stock goes against you, like where are you looking to cut your losses? Do you have stop losses in place? And really have a trading process around what you're doing. So, those are the things that I would say. And then make sure that you read our perspectives, understand how the products work. Um, and and I think that's a pretty good place to start for people that are looking to trade these products. >> Love it. Yeah. Well said. I encourage people to read the perspectives, too. Leveragshares.com. You can check out all of the different products there. Evan, what's on your mind? Uh, first thing on my mind is for you to check my text and I would love to have >> Yeah, I'm gonna pull up a screen share of the website. Uh, yes. Yes, I'll pull up a screen share of the website as we're talking here. So, please, Charles, in the back and get ready to share my screen, but yeah, Evan, go for it. >> Yeah, I have some questions. I want that up on the screen when I am asking them. So, we we'll talk about that in a second here. Paul, I appreciate you for joining us. I uh am very excited to talk about this one. SKH Highix is a name that a lot of people are uh very interested in trading right now. Uh so I think that this question is great. I am excited for next week. Uh yeah, we do have on the screen and I if we can go over specifically to the 2x uh space uh sorry skinix one which again is the ticker uh skhx but uh I think it's on the screen if you go specifically over to the website. >> Yeah. Yeah. Yeah. I'm on uh can you see my >> just go down you'll see it. >> Okay. >> Because it's Yeah. It's It's not available yet, so it's not in our product, but you could see it there with upcoming. Yep. >> All right. Awesome. Honestly, Paul, I am very excited to have you on here again. You went right down and we're just showing the 1x short again. This guy, he the ADHD is to the max. I love it. Uh I am very excited to have Paul on uh on the stream here. Partners over at leverage shares, you guys are creating products. There's immense amount of interest in trading the SKH Heinix IPO. So many people are asking how they can get access to this. The memory trade is one of the best performing names uh it trades so far this year. And the crazy part is the South Korean index which is a majority of these memory ETFs. It is in a bare market. It is down 20% from those highs. So not only is this a trade that has aggression aggressive upside that people are super excited to be watching and trading. Uh there's volatility in it. It's not just going to the upside. It it creates great trading vehicles in there. Uh SKHX is the ETF that you guys have launching here next week. Uh last time you guys launched an ETF, it became the biggest ETF launch in history. I'm curious if that's what you are expecting to see here just with the amount of interest around this name. Uh for SpaceX, maybe there was a lot more conversations around valuation. It feels like SKH the conversations are can this craziness keep going, but no one's arguing that there is valuation problems here. They're actually arguing that SKHENX is trading at a discount to the domestic micron player in space. So I'm curious if when you see SKHX launch next week if you're expecting to be a record launching uh volume launch. >> Even Usain Bolt Bolt couldn't set a record every time he ran you know so you know records are special. Uh SpaceX was special because of you know uh this first foray into space a combination of space AI technology rockets Starling all that stuff. Elon Musk is such a an incredible enigmatic figure. So, it's like that was like a special one. You know, we'd be happy if we broke the record and we'd be really excited about it, but you don't ever plan to break a record. Uh we do see lots of interest and we're getting indications of interest across the board. Uh so, we think it's going to be very very popular. Whether we break a record or not really doesn't matter. What's most important to us is that we launch the product on time uh and and provide uh the investors with what we say 200 long on the upside uh one time short on the downside uh and then I think let the games begin. I agree with you. There's tons and tons of anticipation around this launch. So I think we're going to see lots of volume. I think we're going to see lots of turnover and I think ultimately that'll lead to a lot of AUM in the product. So we're excited about it. Yeah, I am very excited for this SKH Heinix IPO. I know so many people are looking forward to it. There's going to be just so much trading interest in it. I have a feeling that a lot of people are going to be looking for upside and downside ways to play this. SKHX obviously is your guys's ETF. It is the 2x long SKH Highix ETF. So, if anyone in the world wanted to go and trade these, these are ETFs that made are made for traders. These are uh you know not made for investors for people who are already trading these 2x ETFs. This is the ticker that is coming into the world around this one. There is also a 1x short one but we're talking about the 2x uh long SKH ETF which is trading under the SKHX ticker. It is very important that we are getting these out uh as quickly as possible. By the time that these go live there will be no options train options chain available. Uh also another thing to to note here because this is a South Korean company it it moves a lot uh when South Korea the market is open there when it's the daytime which is the night time here. So one of the advantages of the 2x ETFs is they trade throughout the entire day. Options when it does come live uh those will only trade from when the market is open. Uh and for Cosby for people who are watching it a lot of those moves happen overnight. So for traders who are looking at these products from our amazing partners, shadow leverage shares, SKHX being the 2x long uh SKHX ETF, uh tell me more about some of the advantages that someone trading a 2x leverage ETF will see versus options. >> Whoa. I don't know if everybody heard that, but I I got a big beep in my ear there. A little feedback, but >> it was actually uh Go's amazing saying steak for dinner, which >> it was my my wife texting both of us in the group chat. Anyway, so so some of the advantages like I I know there's a lot of volatility especially when you're trading a foreign stock in a on a foreign exchange. Uh one of the advantages of having the ADR now in the United States is that I think it smooths that out and it's going to bring a ton of investors in that were apprehensive to ever invest in a major piece of the memory space. You know, there's three companies that really dominate the market. That's Samsung, that's Micron, and it's SKH Heinix. And now for the first time on an American exchange, you're getting exposure to that. So, we think that's a tremendous advantage. We think that might smooth out some of the volatility, not all of it, but some of the volatility that you see because, you know, you're opening to the United States market and, you know, people are much more comfortable in investing on a US exchange. You know, a lot of times even in South Korea, it's a huge market for us and what we hear is they want US-listed ETFs that they could trade in. So, we think that's going to be great. Um, you know, advantages, again, like I said, we've been doing this a long time. We're really good at what we do. So the the tracking on on these ETFs is going to be, you know, as good as it gets from our perspective. Uh and then you're going to get the lower expense ratio. So you're paying less for a high performance ETF that's going to get you that, you know, 200% of the upside and the ability to hedge one time on the downside. So you know, those are the advantages that we see um you know, with it, you know, now trading in the US market with us. you know, when I switch over to the uh the short side of this, the 1x short ETF that you guys have launching here as well, which is up on the screen. There we go. Shout out. Um, yeah. So, the memory trade has been one of the best performing trades so far this year. There are people sitting in these things with hundreds of percentage of of gains. Sometimes there's different tax things here. A lot of these people have been playing them through weird ETFs and stuff. Some some people are just going to sit here and think these things have run way too much. Uh obviously you guys are launching uh a 1x short uh skhinx ETF. For the most part these leverage single stock ETFs are made for traders. They are not made for investors. These are people who know what they're doing who are exercising a trade. We'd love to see our partners launching these type of products. But for the people who are interested in either hedging a position, maybe think something has gone too far here. There is a new ticker coming into the world. I am curious your thoughts here on SKHZ. Uh it'd be more short versus 2x short and just generally how you envision people using this. >> Yeah, we like it. And again, you know, I get asked a question a lot often on parabolic charts like is now a good time to get in? Is now a good time to get in? And what I always say to people is like timing is really important when you're entering into a trade. And whenever I see like a parabolic move up, you know, I'm always sensitive to tell people or even myself get into that trade, you know, especially if it's happened over a period of time. So the memory trade did take that big huge spike up and it's settled back right. So we have you know pretty good indications that uh there you know this may be a time to maybe dollar cost average in but also there's a lot of people in the marketplace right now that are saying hey these names are still too frothy so on and so forth. So, for me, you know, if you're long and this is a good entry point for you to get in um like this is a good time to maybe take on uh a little bit of leverage with that um and see if you can run. Uh but again, for those people that think there's still more to come off and are holding a position instead of selling that position or trimming it or doing whatever, uh it's an excellent time to get in. Let's say we have another parabolic move in this stuff because it could happen, right? Memory is so scarce. It's a commodity. It's very very scarce and and um there's a lot of investment in this space. Um you know, you really don't have to worry if your long positions, whether that's leveraged or just in the underlying security takes off too far. You don't have to sell. You can uh use our one-time short to sort of hedge that. And then uh no margin requirements. You don't have to, you know, borrow the stock or anything like that. It's just a simple ETF. Gives you the exposure to to one-time downside. hedge that position and if you've got it wrong or you're feeling more bullish, uh just very simple daily liquid trade out of it. >> Thank you, Paul. I appreciate it. I am very much uh looking forward to uh to watching the first week on these ones. >> Yeah, we're excited, too. >> I think so. I look at the SpaceX one and I look at the the memory stuff, been trading around it. I I find it hard to believe this won't end up being uh a record first week as far as volume goes uh for the 2x SKH high ETFs here. >> We'll see. I from from uh your lips to God's ears, I'll take it. >> Again, for the people, >> we're not saying go in I'm not saying go in and trade something. I'm not trying to be like, "All right, guys. If you've never touched a 2x ETF, today is that's not where I'm sitting here. It's for the people who know what they're doing, who are utilizing this. Do you think this is the right time for this play? There is SKHix is trading at a discount to Micron. This is because US investors have not had the chance to get exposure to this and it is coming listing in the US markets. This trade there is years and years of demand problem or sorry there is years and years of an imbalance of supply and demand to work out here. They are aggressively in creating more factories but it takes two three years for that to come online and we're Oh, sorry. Go ahead. I didn't I didn't mean to turn you off. I was gonna say I think I think you're making a really good point there. And there's a reason why you ADR in the United States because it brings in a whole new capital structure that you couldn't get. You know, they're an established company. They're the second largest company in in South Korea. But, you know, you get something special when you get access to the uh US marketplace. And so, I agree with you. Uh people are going to look at this versus competitors versus Micron. It's at it's it's trading at a discount. I think that's uh going to bring in a whole new flow of capital um to the position and then we'll see how that shakes out. >> Yeah. I I actually wanted to hear as well just because we're comparing it to MU, you know, I would say most directly, but also a little bit to Samsung and pieces like that. Micron already having been listed on the US markets. Um you guys have a ETP uh I believe MU2 um on the European markets for those that are curious. I guess in the US markets that could even be like a sympathy maybe. Is there anything in that area that they can point to >> that? Who could point to? >> Uh like someone looking for a leverage shares product to kind of trade other names in this ecosystem around the memory trade. >> Ah yeah I mean like they could that's our sister company in Europe leverage shares EU. Uh and yes, they have a three times. So you could absolutely uh if you have access to, you know, a European exchange like the LSE, uh 100%, you could trade into that as well. Uh and I don't know if it's a sympathy trade, uh what I would say is if you're bullish on memory and you think that Micron has come down far enough, absolutely. Um you could totally uh add that exposure if you again if you have exposure to European uh exchanges. Um but again in the US if you're looking for that uh exposure to SKH highinex and you know with leverage we're going to be able to provide you that here 2x uh in the US >> makes sense and then in like 30 seconds just kind of like talking to the people that understand these ETFs right and some of the trading like Evan said like the people that you're really going for here in 30 seconds why do you think that especially having seen what happened over with 2x leverage ones in Korea why do you think that this is a unique unique opportunity in comparison to other 2x leverage ETFs on other names. >> Well, again, I think there was a lot of volatility in Korea. I think there the regulators are also a little bit concerned over there. So, they've been making comments doing all that stuff. In the US, this is part for the course. We've had these leverage products for a while. The regulators are fairly comfortable with the where they are in the marketplace today. And so, I don't think you're going to see any of those kind of issues. We're very deliberate in the timing of these, getting them uh out to the market, you know, after uh the IPO list or in this case the ADR. So, I think it's just going to be listed uh you know, regular business uh for us and uh you're not going to have any of the issues that you've seen overseas. >> Got it. Makes sense. Evan, did you have any other questions in that area, too? >> Yeah. No, I really love that kind of team on the 30 second, 60-cond explanation there. Um and I kind of want to ask it around why people use 2x and and leverage ETFs in general. So like we are getting SKHEX is going public. The memory trade has been so hot. There is so much interest around this. Why is someone in 30 to 60 seconds using a 2x product a leverage product versus just trading the spot or buying on options? >> What is well people leverage has existed in the marketplace for years. uh but a lot of people didn't have access to it. And as retail traders are doing it themselves more and more and more tools are available to them, what they want is a democratization of their capabilities versus the pros. And even if you're an individual investor that's relatively savvy, it's hard to price out the options the same way that a large institution can. So from this perspective, you know what you're getting and you know the price that you're paying and it's very easy to use, very easy to get in and out of. You could trade it before market hours, after market hours, and it's just a very easy way to gain leverage to the upside or the downside or to hedge up a portfolio if you need to on the short side. And uh it's just the ease of use. Like ETFs make everything easier. We do all the hard work in getting you the exposure and then you could just sit at your desk and trade them in and out with liquidity, not having to worry about pricing the options, the expiration dates, borrowing the stock short, taking out margin calls, so on and so forth. None of that has to happen with us. It's just simple ETF exposure to the upside, exposure to the downside, and then you get to just trade and put it into your process. >> Love it. our partners at leverage shares launching a 2x long SKH highix ETF on Tuesday SKHX 4 a.m. It's going to start trading the 1x short is SKHZ. I am very excited to this. I appreciate partnering with great people doing great stuff like this creating tra trading products and I am very much looking forward to the future. Paul, I really appreciate you for joining us. >> Oh, thank you guys so much for your partnership. Uh and pleasure to be on with both of you. >> Thank you as always, Paul. Appreciate you. Really excited to see how these do next week. >> Same here. Thanks, guys. And thanks to your audience, too. We love them. >> Thank you for watching our video. If you're a leverage ETF trader, our sponsor, Leverage Shares, is providing people with the first 2x leveraged ETF for SKHEX. That is going to be SKHX. Make sure to share this video out, give it a like, and check out the disclosures below.