Can ETF Options Offer Cheap Leverage to Reliably Boost Returns? [View article]
Jordan,
The thing you forgot was the dividend on SPY that you would not receive by owning the call. If you factor this in, you will see that you are actually paying for the downside protection. Your position is equal to being long SPY and a march 120 put.
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Latest | Highest ratedCan ETF Options Offer Cheap Leverage to Reliably Boost Returns? [View article]
The thing you forgot was the dividend on SPY that you would not receive by owning the call. If you factor this in, you will see that you are actually paying for the downside protection. Your position is equal to being long SPY and a march 120 put.
Kapil