News of the new COVID-19 variant Omicron is sending the S&P 500 on a roller coaster ride, but traders can double up their gains with the Direxion Daily S&P 500 Bull 2X Shares (SPUU).

Despite the recent volatility, SPUU is still up almost 50% on the year. The ETF seeks daily investment results, before fees and expenses, of 200% of the daily performance of the S&P 500® Index.

The fund accomplishes this leveraged exposure by investing at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements and securities that comprise the index. SPUU also contains ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index.

The market whipsaws this week have certainly given traders the opportunity to play the peaks and valleys. The valleys, in particular, have given traders and investors alike the opening to take value positions by purchasing stocks on the cheap.

“It is a bit of a ‘buy the dip’ environment … uncertainty will persist over the next week or so as scientists do more studies over the new variant,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

“I still think investors want to focus on equities, they just need to be given a reason to do so,” Stovall added further.

SPUU Chart

Make It a Triple

For the bold, there exists the Direxion Daily S&P 500® Bull 3X Shares ETF (SPXL), which gives triple exposure to the S&P 500. Just like SPUU, SPXL invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.

With that extra dose of leverage, SPXL has managed to gain close to 80% this year. Of course, with that leverage comes great risk, so the fund isn’t ideal for novice traders.SPXL ChartFor more news, information, and strategy, visit the Leveraged & Inverse Channel.