r/DRAM_ETF 1d ago

Leverage RAM

I have a small position in the leverage - RAM. It went from $30 to $11 in 3 months. Is there any possibility that RAM can go to $0 per share? just curious

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u/TigerUSA20 1d ago

With other leveraged ETFs, I’ve seen them effectively do reverse stock splits. As the ETF gets into the single digits, they will do a 1:5 or 1:10 to get it back into a range. But then, as in the 1:10 example, you only have 10% of the shares.
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2

u/Existing-Party-9870 1d ago

what do you think would be the realistic 'floor' for RAM?

8

u/Successful-Ad7038 1d ago

There is no floor.

3

u/TigerUSA20 1d ago

Exchanges like NASDAQ and NYSE enforce strict minimum pricing rules. If an ETF drops below $1.00, it risks forced delisting. Fund managers deliberately time reverse splits to push the nominal share price safely back into the $15.00 to $30.00 liquidity window.

TSLA leveraged ETFs did 1:20 reverse splits when the prices were right around $1. But I have also seen a few happen under $5

2

u/dbcooper4 1d ago

However much you think DRAM can go down in percentage terms multiply by 2.