(MSTU) Covered Calls

The T-Rex 2X Long MSTR Daily Target ETF is a leveraged exchange-traded fund that seeks to provide two times (2x) the daily performance of the common stock of MicroStrategy Inc. (MSTR). Using financial derivatives, the fund allows traders to amplify their bullish conviction on the world’s largest corporate holder of Bitcoin. As a daily-resetting vehicle, it is designed for short-term tactical use and is subject to significant volatility decay and compounding effects over longer periods.

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Extended Business Description

T-Rex 2X Long MSTR Daily Target ETF is a high-conviction leveraged fund that offers 200% daily exposure to the share price of MicroStrategy Inc. (MSTR). Issued by REX Shares and Tuttle Capital Management, MSTU is designed for sophisticated investors who view MicroStrategy as a high-beta proxy for Bitcoin. Because the fund resets its leverage at the end of every trading day, it is a specialized tool for intraday and tactical swing trading rather than long-term "buy and hold" investing.

Core Strategy and Operations

  1. Synthetic Leverage Mechanism: MSTU achieves its 2x target through a combination of swap agreements with major global banks and investments in financial instruments that reference MSTR. This "unfunded swap" structure provides a capital-efficient way to double the daily percentage moves of the underlying stock without the need for traditional margin.
  2. Daily Reset Dynamics: The fund rebalances its exposure daily to maintain a consistent 2x leverage ratio. In 2026, this mechanism is a primary focus for traders, as the high "reflexivity" of MicroStrategy stock can lead to extreme performance divergence—both positive and negative—compared to a non-leveraged position over multiple days.
  3. High-Liquidity Collateral: To back its swap obligations, MSTU maintains a substantial portfolio of cash and short-term U.S. Treasury bills. This collateral generates interest income that helps offset the fund’s 1.05% expense ratio.

Competitive Landscape

MSTU is a dominant player in the leveraged single-stock ETF space. Its most direct rival is the Defiance Daily Target 2X Long MSTR ETF, which also targets a 2x daily return. For investors seeking income rather than just leverage, it is compared to the YieldMax MSTR Option Income Strategy ETF. In the broader crypto-leveraged sector, MSTU competes for tactical capital with the 2x Bitcoin Strategy ETF and the GraniteShares 2x Long COIN Daily ETF. Bearish traders often use MSTU in tandem with the T-Rex 2X Inverse MSTR Daily Target ETF (-2x) or the Defiance Daily Target 2X Short MSTR ETF.

Strategic Outlook and Innovation

In 2026, MSTU has become a benchmark for "volatility trading" within the digital asset ecosystem. Following a massive 1:8 stock split in late 2025/early 2026, the fund has maintained high accessibility for retail and institutional traders alike. A key strategic focus is managing the "cost of leverage" in a market where MicroStrategy’s implied volatility remains structurally elevated. Innovation is centered on the maturity of the MSTU options market, which has become one of the most liquid venues for "gamma-weighted" trading strategies. As MicroStrategy continues its transition into a specialized "Bitcoin Treasury Company," MSTU serves as the ultimate high-leverage vehicle for investors looking to capitalize on the firm’s ability to use low-cost debt to acquire Bitcoin. By maintaining a transparent 1.05% fee structure and deep swap capacity, MSTU aims to remain the premier choice for traders navigating the most volatile corners of the NASDAQ.