jbs

My All-or-Nothing Strategy

Averaging down with options is not smart. It may work -- but it is not smart in any environment, let alone in this one with the VIX at all-time highs. You are really paying for that leverage -- leverage which would be cheaper if you just bought on margin.

But the real reason it is not smart is because you are substituting a time-insensitive position for a time-sensitive position. You are converting a long term position into a short-term position.

You think you aren't buying on margin, but you are employing another form of leverage -- a more expensive and time-sensitive form.