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That's exactly my point.

There's no real appetite for debt in the world so this may all be just the beginning of the NIRP experiment.

Something tells me you do care. I guess every mathematician and scientist is a noob troll now for demanding evidence in the defense of claims.

You're not informing anyone by posting an equation with no explanation or rationale. Do mathematicians publish papers with just their final result?

Then why should anyone use it?

https://en.wikipedia.org/wiki/Kelly_criterion

Since every options quote has the same syntax, some regex/string manipulation should help. python would be a good language to try. https://en.wikipedia.org/wiki/Regular_expression https://docs.python.org/2/library/re.html I don't know if you can program or not, just the first thing that popped...

Buying a 2x levered etf would be like buying the underlying with 2:1 leverage then selling a call for $0.00 and delta hedging it perfectly so that your only loss associated with the option is from realized vol. However you don't delta hedge out the original 2:1 purchase just the option deltas.

I loved that you called me a noob since my account is older than yours. :vomit:

It's not a bogeyman and daily rebalancing can significantly affect your returns to the point where an overall favorable move in the index can net you a loss. All leveraged etfs that rebalance daily are intrinsically short volatility. The higher the leverage the greater your volatility short...

Given that you guys are talking in circles about nothing new, way to pay your self on the back.

This is exactly what I'm talking about. What a load of gibberish.

25 pages and not a single useful thing has been said.

Reg T margin is limited to 2:1. Higher leverage with margin requires a portfolio margin account with a broker that provides portfolio margin. More than that there's nothing that says you can't do this with options which provide high leverage but that can get messy dealing with the Greeks.

Rebalance process: It's just simple math. Hence my point of not needing to read a prospectus though it doesn't hurt. Let's use margin as our source of leverage. We want to replicate a -2x levered etf which means we want -2x the daily returns of the underlying. So what do we have? Day 1: Short...

True to my word I haven't looked at a single prospectus. Research: I saw SCO was a -2x leveraged etf so I looked for a -1x or +1x version of the same etf. I found a +2x but since this about replicating leveraged etfs in the first place I didn't consider it. I did not find a -1x or +1x version...

If there's an underlying you can trade you just rebalance your leverage everyday. Doesn't require reading one word of a prospectus.

Pullback SPX will end the year green.

But eventually you will need to collect your profits and you will be double taxed then. If you do LLC or partnership as mentioned earlier you avoid double taxation but still pay tax as you normally would. I don't know if you have special circumstances but as one guy trading there really isn't a...