Key Highlights

  • Leverage Shares 2X Long FORM Daily ETF (CBOE:FOMG) closed at USD 7.73 on September 29, 2026, up 5.17 percent on the day and 28.83 percent over one week.
  • Despite a 42.88 percent one month gain, the fund remains 43.66 percent below its level at launch on June 23, 2026.
  • FormFactor (NASDAQ:FORM) extended a six session run to about 29 percent through September 23, supported by high bandwidth memory probe card demand.
  • The gap between the stock's path and the fund's path is a textbook case of daily reset compounding in a volatile name.

What FOMG Is and How It Works

Leverage Shares 2X Long FORM Daily ETF (CBOE:FOMG) began trading on June 23, 2026 on Cboe, with a stated objective of delivering 200 percent of the daily performance of FormFactor (NASDAQ:FORM), before fees and expenses. The issuer lists an expense ratio of 0.75 percent. Each day the fund rebalances to restore its 2x exposure based on the new net asset value, so its return over any period longer than a day depends on the sequence of daily moves, not just the starting and ending price of the stock. Issuer data showed 60,000 shares outstanding as of August 12, which points to a very small asset base; spreads and Liquidity deserve attention in a fund this young.

The Stock Story Behind the Rally

FormFactor supplies probe cards and test systems used to check chips before packaging. For the second quarter of 2026, reported July 29, Revenue reached USD 258.2 million, up 31.9 percent from a year earlier, with non GAAP diluted Earnings of USD 0.82 per share. Management guided third quarter revenue to USD 270 million, plus or minus USD 10 million, citing high bandwidth memory probe cards and co packaged optics systems. CEO Mike Slessor said the company had grown revenue more than 30 percent over four quarters and tripled earnings per share. The shares closed at USD 126.01 on September 22 against a 52 week range of USD 34.80 to USD 160.27, then reached USD 131.26 on September 23, lifting Market Value near USD 10 billion.

Why a Week of Gains Has Not Repaired the Damage

FormFactor was down about 7.2 percent over the three months to September 23, yet the three month return for FOMG stood at a loss of 44.07 percent as of September 29. That gap is far larger than a simple doubling of the stock's decline, and it reflects Volatility decay. As a labeled illustration: a stock that falls 10 percent and then rises 10 percent ends 1 percent lower, while a 2x fund that falls 20 percent and then rises 20 percent ends 4 percent lower. Repeat that pattern through sharp swings and the damage compounds. By simple arithmetic, FOMG would need to gain roughly 77.5 percent from USD 7.73 to return to its launch level. Semiconductor volatility more broadly, visible in the iShares Semiconductor ETF (NASDAQ:SOXX), adds to the swings.

Where Things Stand

Not necessarily. The 28.83 percent weekly jump in Leverage Shares 2X Long FORM Daily ETF (CBOE:FOMG) is real, but it came after a deep drawdown that daily compounding made worse than the move in FormFactor (NASDAQ:FORM). Solid second quarter results and memory test Demand support the stock narrative, while valuation, insider selling under a 10b5-1 plan and the fund's small size keep the picture balanced. Third quarter results against the USD 270 million guidance midpoint are the next checkpoint. The fund is designed for single day exposure.