I have a swing trading strategy with an average holding period of 3-10 days. The strategy trades only the DOW 30 stocks. I plan to use approx 30k of my account trading this strategy. After margin I would have roughly 60k for overnight holdings. The system is designed to put roughly 10k into any one trade. However the system often has more than 6 active positions. This uses up all of the 60k buying power. The strategy is designed to take all signals, therefore selecting at most 6 active positions is not an option. Reducing 10k into each trade is not an option either. Therefore, what I am thinking of doing is buying deep in the money calls instead. This should in theory give me more leverage and allow me to hold more positions at a time. I have a few concerns/questions that I do not yet know the answer to. #1 How much do I gain using this method? Glancing at a few options on DOW stocks it looks like a typical 10k position will cost me 1 to 2k instead to open using DITM options. Does this seem realistic? If so I should be able to open closer to 15 positions at a time instead of 6. #2 My next fear is related to the spreads on DITM options. I have not done much trading in DITM options before so I am not too familiar with typical spreads. I know with most ATM options splitting the spread and placing the order at the midpoint seems to normally work. Does that hold true on DITM options as well? #3 Extrinsic value concerns. Most DITM options will have only a slight premium I would imagine. If I am holding for only 3 to 10 days, is it likely I will get most of this premium back when I sell? I know these options should lose premium much slower than ATM. Are there other issues I should look into about using this method to increase the number of positions I can open at a time?