“But trading is about finding inefficiencies, and some think investors have overreacted. Contrarians may bet that a diplomatic solution is Russia’s only option, as trade dependencies make war too costly for Putin. Like it or not, Europe is Russia’s largest energy customer. This trade fact, promotes peace over war. So if diplomacy prevails, the bulls are betting on upside opportunities for oversold Russian stocks,” said Direxion.

One thing is certain: The conflict in Ukraine has sparked increased interest in leveraged Russia ETFs.

Heading into Tuesday’s session, RUSL’s five-day average volume as a percentage of its 20-day average volume was 215.3% while the equivalent number in RUSS was 114.3%, according to Direxion data.

In a sign that some traders are betting on a Russia rebound, RUSL has seen inflows over the past month while RUSS has lost cash.

Chart Courtesy: Direxion