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I was antecipating an idiot like you talking about a different option strategy and changing the subject about the strategy I referenced in the OP. The strategy is about deep ITM calls (not slightly ITM calls). I said way OTM calls are not relevant because its very different from being margined long

sold Fed futures for a small gain, just in case

Its not about expecting or not expecting, if the drop were to occur I think you would lose in some scenarios where my deep ITM call would not lose as much (nor it would the outright margin levered postion) so essentially it would be a different type of position as an margined outright long

I made no such typo. I meant way OTM. Thats what people go for when they want levered exposure to an underlying and I wanted to antecipate people saying that was a better way to do it. I dont think it is as I just want to recreate margin leverage but in a different way

I dont think these calls are deep ITM enough, what I'm referring to are calls that are so deep ITM they are almost like buying the stock outright. Delta is super high

I guess this could offset the lower interest rate from the option position...

You are correct, however the $5 calls in the example are likely to be priced at $5 plus interest. So effectively you own a $10 stock but only have to put $5 plus interest down (a little over 50%). The situation seems very similar

Just to explain to someone if they are new to the journal, what I'm trying to do here is a variation of the Jim Leitner approach from the book Inside the House of Money. I'm trying to earn risk premia with a diversified portfolio that is twisted a bit by some of macro views. But sometimes its...

Lets say you have $100k and are bullish XYZ at $10 (stock has no dividend). You decide to lever up because you really like this opportunity. You could buy $150K worth of stock borrowing the difference from your broker or you could buy long-term deep ITM calls (lets say for $5 strikes). You will...

Right now I'm at roughly: 43% long stocks(PSH, EWZ, EWZS, BRKB, OAK plus some smaller ones), 17% in BR USD bonds, 10% gold and 1.5% gold stocks 6% UST bonds (15y), 22% in cash I'm reluctant to add more stock positions, unless we have a nice pullback on SPY

Yes, they have different fee structures. The cost of getting involved with each of them varies widely

It would depend on the mechanics of the stop order. I believe the ISO trades would trigger the stops, unless the stop logic has something that prevents trades off the NBBO from setting off the stop. I have no idea how common is for them to incorporate that

got a 12% position on BRKB now, plus im short some 140 puts

Nevermind waiting, I bought my BRKB stake and covered SPY. The market is holding up in a healthy fashion here. Specially given how weak bonds were at the open

An ISO order can trade at worse prices than whats quoted elsewhere (with some restrictions). Why would someone do that? Because its about liquidity not price, if someone is offering 5K at 10.01 but someone is offering 100 at 10.00, you dont really care about that 10 offer. If you are in need of...

If SPY closes strong today, I will buy a 8% position in BRKB, this on top of the puts I'm short

If there is one thing that I learned being more active in investing over the past year is that its a lot better to have the problem of buying something and then having it become even cheaper than not buying, in the hopes of it going down further, then watching it rise without you. In the first...

BRKB is trading at $145 a share, the Buffett buyback kicks in at $128 (120% of book value). Here is an article that is from late last year that shows how cheap this is compared to everything else "In my opinion, the results are pretty remarkable. Assuming no major insurance catastrophes and a...

This stock is tough as nails. I lost a bit trying to short on the way up in the 17-19 range. Then I gave up. I dont understand what is driving it (if its pure manipulation, if its a sector move or what). I also dont see any good catalysts for a collapse (they dont have financing effective with...

I'm guessing never " Federal Prosecutors Investigating Wells Fargo Over Sales Tactics Investigation is being conducted by the U.S. Attorney’s Offices for the Southern District of New York and the Northern District of California"...