Options Listed for the AdvisorShares MSOS 2x Daily ETF (Ticker: MSOX)

Rhea-AI Summary

AdvisorShares has announced that options for the AdvisorShares MSOS 2x Daily ETF (Ticker: MSOX) are now available for trading as of February 7, 2023. MSOX aims to provide daily investment results that correspond to two times (2x) the daily total return of the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS). Designed for sophisticated investors, MSOX offers magnified exposure to the U.S. cannabis market, facilitating short-term trading with increased buying power. Since its inception in September 2020, MSOS has emerged as a major player among actively managed cannabis ETFs, focusing on U.S. companies involved in the legal cannabis sector.

Positive

• MSOX options are now listed for trading, enhancing liquidity.
• Designed for sophisticated investors looking for magnified exposure to the U.S. cannabis sector.
• Provides increased buying power with 2x the cannabis exposure for less cash.

Negative

• None.

MSOX joins MSOS, YOLO and number of other AdvisorShares ETFs with Listed Options

BETHESDA, Md., Feb. 7, 2023 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced that AdvisorShares MSOS 2x Daily ETF (Ticker: MSOX) options are now listed for trading.

MSOX seeks daily investment results that, before fees and expenses, correspond to two times (2x) the daily total return of the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS). MSOX does not seek to achieve its stated investment objective over a period of time greater than a single day. MSOX is designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector.

The magnified exposure to cannabis which MSOX provides is designed for short-term trading. Its increased buying power offers 2x the cannabis exposure in a single trade, allowing MSOX shareholders to overweight cannabis holdings for less cash. AdvisorShares managing director Dan Ahrens serves as portfolio manager of both MSOX and MSOS. Ahrens is one of the most accomplished and experienced portfolio managers who specializes in cannabis and vice-related investment strategies.

When it launched in September 2020, MSOS became the first U.S.-listed active ETF to deliver exposure dedicated solely to American cannabis companies including multi-state operators (MSOs), and then quickly ascended to become the largest publicly traded cannabis fund in the world. MSOs are U.S. companies directly involved in the legal production and distribution of cannabis in states where approved.

MSOX joins other AdvisorShares ETFs with options listed including:

AdvisorShares Pure US Cannabis ETF (Ticker: MSOS)
AdvisorShares Pure Cannabis ETF (Ticker: YOLO)
AdvisorShares Hotel ETF (Ticker: BEDZ)
AdvisorShares Managed Bitcoin Strategy ETF (Ticker: CRYP)
AdvisorShares Restaurant ETF (Ticker: EATZ)
AdvisorShares Gerber Kawasaki ETF (Ticker: GK)
AdvisorShares Ranger Equity Bear ETF (Ticker: HDGE)
AdvisorShares Let Bob AI Powered Momentum ETF (Ticker: LETB)
AdvisorShares Alpha DNA Equity Sentiment ETF (Ticker: SENT)
AdvisorShares Psychedelics ETF (Ticker: PSIL)
AdvisorShares Vice ETF (Ticker: VICE)

AdvisorShares is committed to providing ongoing investment education for its ETF shareholders, prospective investors and the investment community at large. AdvisorShares regularly hosts live webinars featuring portfolio managers and leading industry experts. You may learn more and register at the AdvisorShares Event Center for upcoming educational sessions on different investment strategies.

About AdvisorShares

AdvisorShares is a leading provider of active ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit advisorshares.com. Follow @AdvisorShares on Twitter and on Facebook, YouTube, LinkedIn and Twitch for more insights.

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information are in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.advisorshares.com. Please read the prospectus and summary prospectus carefully before you invest.

Foreside Fund Services, LLC, distributor. 

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily 2x investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. An investor could lose the full principal value of their investment within a single day.

The Fund is an actively managed ETF that seeks to provide investment results that are two times (2x) the daily total return, before fees and expenses, of the US Cannabis ETF, an affiliated ETF, by entering into one or more swaps agreements on the US Cannabis ETF. The Fund does not seek to achieve its stated investment objective for a period of time different than a single day.

The Fund will enter into one or more swap agreements intended to produce economically-leveraged investment results relative to the returns of the US Cannabis ETF. The Fund may use a combination of swaps on the US Cannabis ETF and swaps on various investment vehicles that are designed to track the performance of the US Cannabis ETF. The Fund expects that cash balances in connection with the use of such financial instruments ("Collateral") will typically be held in money market instruments or other cash equivalents.

Cannabis-Related Company Risk. Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company's ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.

Shares are bought and sold at market price not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.

An Option is a privilege, sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

 

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SOURCE AdvisorShares

FAQ

What is the significance of the AdvisorShares MSOX options listing on February 7, 2023?

The listing allows for increased trading flexibility and liquidity for investors interested in the MSOX ETF.

How does the MSOX ETF achieve its investment objectives?

MSOX seeks to provide daily returns that are two times the daily total return of the AdvisorShares Pure US Cannabis ETF (MSOS) through magnified exposure.

Who is the portfolio manager for MSOX?

Dan Ahrens, managing director at AdvisorShares, is the portfolio manager for MSOX and MSOS.

What type of investors is MSOX designed for?

MSOX is targeted at sophisticated investors who are looking for short-term trading opportunities with leveraged exposure to the cannabis sector.

What is the launch date of the AdvisorShares MSOS ETF?

The AdvisorShares MSOS ETF was launched in September 2020.

What companies does the MSOS ETF focus on?

MSOS focuses on U.S.-listed cannabis companies, particularly multi-state operators (MSOs) involved in legal cannabis production and distribution.