probably a dumb post, but here goes. I am trading an indicator that predicts direction, and I want positive delta. How would you best do it? (admitting that "it depends" is probably the "answer") Test account is $50K, so I'm loathe to spend $46K to buy 100 shares of SPY. I could sell naked puts on margin (when I get tier 3 options approval). I could sell put spreads. What I am actually doing is just buying 80 delta 60 DTE calls (sorta LEAPS). (I guess it's not a horrible time to do so, with volatility probably on the low side of its likely future range.)
I guess I am fixated on owning 100 shares (even though I could give a crap about selling covered calls anymore), which would leave my $50K account over-concentrated in SPY. Also, it's cheaper to get leverage with options (though I could just buy shares on margin if I was desperate for leverage).
%% BUY SPY/scale in; buy sso /scale in only if SPY start$ up soon\ most likely wiil............................................................ I like positive profits more than any options, buts that'$ me. Most likely will do much better than your spy options, but prove it next 12 months. NOT a prediction /not insured by any federal agency/thank God. Back to my sso up/trendss.........................................................................................[EDIT /SPXL + upro may do well/ but i had trouble getting a UPRO limit fill early today!!!]
Good point, just buying the leveraged ETF is an even easier way to get leverage. (I said it was probably a dumb question). Options do have a lot of drag...
If you're trading the indexes with a $50K account then I suggest micros. No PDT bs, decent leverage, good liquidity.
Do you mean micro futures? What symbols? (Have been meaning to educate myself on futures, but run short of time in the day)
Take a look at BULZ. Heavily concentrated in top momentum stocks and gives you leverage, which you probably want. https://www.bmoetns.com/Documents/BULZ/Fact_Sheet.pdf