Is there any prop (or broker) where you can get overnight leverage for options ? I only know one prop where you can get 2:1 leverage for options but only intraday.
I did not mean trading overnight, I mean getting additional leverage in excess of the Omega provided by the options. Because it is not possible (?) to get any Omega beyond 5 on index options. So for my Call Leap I would like to get overnight leverage of 2 so I have true 10:1 leverage. With Index Futures I do need to pay 5% margin holding overnight, so with 10% for any drawdowns, I would need to hold 15% with futures only 6.66:1 leverage then. Of course I just could flatten every day futures and then reopen after the session break, but I do not want this extra work every day for the idea of holding leaps. So what can I do to get more leverage or more Omega ?
Options are not marginable, but a prop firm can provide whatever leverage they want as you trade in their account.
Portfolio margin is 6.66:1 or ? There is no more room, so if you take full leverage you cannot have any further drawdown. So in the end you would have effective max. 4:1 leverage only with some room that the position can go against you. Not better than any Leap where I can get 5:1 leverage. Anything else ? I already considered CFDs, but swaps are so high, like 7% p.a. financing rate, which I do not really like. That is too much I think. But I have not found any bigger broker providing lower financing rates with good leverage on index cfds. Anything else to consider ?
Page 5 of the margin manual allows for a 25% release for long-dated options, but getting it in retail is almost impossible as no firm has written the logic for retail. Getting real leverage requires pro-customer status and a cooperative clearing relationship. Fully hedged, like European boxes are 20-1. However, that is a fantasy expectation for straight retail.