SMCZ -2x Defiance Daily Target 2X Short SMCI ETF
SMCZ
ETF -2x BEAR standardDefiance Daily Target 2X Short SMCI ETF
Implied AUM
$6.6M
Last Close
$12.79
20260720
30d Avg Vol
1,202,715
Options
—
Realized return vs theoretical -2x SMCI
Pair counterpart found:
SMCX
(+2x bull, Defiance Daily Target 2X Long SMCI ETF)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking SMCI
How SMCZ works
SMCZ targets -2x the daily return of SMCI — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.
Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a -2x product on an underlying with 25% annualized vol, expected annual drag is around 6.2%. Add expense ratio and the realized number is typically worse.
- Short-term tactical: daily and intraday holds are where these products were designed to live.
- Premium selling: options on SMCZ carry very rich IV — see the quote page for IV rank and straddle pricing.
- Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.