SCO
ProShares UltraShort Bloomberg Crude Oil
stock NYSE ETF

In my eyes, oil is peaking right now. Based on gas prices in recent years, I don’t think it will go much higher, meaning I don’t think SCO will go much lower. We saw $5+/gallon gas in my area a couple years ago, it didn’t last long.
As for how the owner of this ETF makes money, beats me. Maintenance costs? I just play the game man.
If you half something an infinite number of times, it will approach zero, but never actually reach zero

So it's supposed to go up when oil goes down, right? So it's always going down? And if one day oil plummets, this will what shoot up?
What I don't understand is where the numbers come from. They make their own "company" for you to invest in, so the original shares come from the parent company, since this company/etf doesn't make money on its own, right?
But then you have a 2x thing that makes things double. I don't understand how it's profiitable for the parent company. If the oil price moves too fast, doesn't it risk crashing this etf? Like SCO is at 6.77 now, if oil keeps going up and this reacts 2x to every movement, doesn't it eventually go to 0?

In my eyes, oil is peaking right now. Based on gas prices in recent years, I don’t think it will go much higher, meaning I don’t think SCO will go much lower. We saw $5+/gallon gas in my area a couple years ago, it didn’t last long.
As for how the owner of this ETF makes money, beats me. Maintenance costs? I just play the game man.
If you half something an infinite number of times, it will approach zero, but never actually reach zero

So it's supposed to go up when oil goes down, right? So it's always going down? And if one day oil plummets, this will what shoot up?
What I don't understand is where the numbers come from. They make their own "company" for you to invest in, so the original shares come from the parent company, since this company/etf doesn't make money on its own, right?
But then you have a 2x thing that makes things double. I don't understand how it's profiitable for the parent company. If the oil price moves too fast, doesn't it risk crashing this etf? Like SCO is at 6.77 now, if oil keeps going up and this reacts 2x to every movement, doesn't it eventually go to 0?