Active traders have new, highly powered tools at their disposal as Direxion rolls out four single-stock leveraged and inverse exchange-traded funds.

These ETFs, focused on Eli Lilly & Co (NYSE:LLY) and Palo Alto Networks Inc (NASDAQ:PANW), offer traders a way to multiply their bets—or hedge against downturns—in the booming pharmaceutical and cybersecurity sectors.

The latest additions include:

The Direxion Daily LLY Bull 2X Shares (NASDAQ:ELIL)
Direxion Daily LLY Bear 1X Shares (NASDAQ:ELIS)
The Direxion Daily PANW Bull 2X Shares (NASDAQ:PALU) and
Direxion Daily PANW Bear 1X Shares (NASDAQ:PALD).

Why Eli Lilly, Palo Alto Networks?

According to Direxion CEO Douglas Yones, these two stocks are prime candidates for leveraged trading given Eli Lilly's dominance in healthcare innovation and Palo Alto Networks' leading position in cybersecurity.

The ETFs allow traders to play short-term moves in these stocks with amplified exposure – ideal for those looking to capitalize on momentum or protect against volatility.

Recent performance highlights the appeal: Eli Lilly has gained 9.99% in the past year but slid 6.85% over the last month, while Palo Alto Networks has soared 32.51% year-over-year and held a modest 0.21% gain in the past month.

High Risk, High Reward

While these ETFs open up fresh opportunities, they are not designed for buy-and-hold investors. Leveraged and inverse funds are built for short-term trading strategies and come with increased risk. Unlike traditional ETFs, these products track a single stock rather than an index, making them highly volatile.

For traders with a high-risk tolerance, Direxion's latest ETFs offer a way to trade fast-moving stocks with leverage. Just make sure to understand the risks before diving in.

Read Next:

Buy-the-Dip Strategy Amid Market Chaos: Why A Billion Dollar Fund Is Buying These Four Stocks

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