Timeline for How can I lever up my index fund returns?
Current License: CC BY-SA 4.0
10 events
| when toggle format | what | by | license | comment | |
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| Oct 8, 2020 at 18:00 | history | tweeted | twitter.com/StackFinance/status/1314264327172521985 | ||
| Oct 2, 2020 at 12:13 | comment | added | Bob Baerker | Say ETF is $300. Rise of 5% takes it to $315. Determine how long you think it will take to rise 5%. That's your earliest possible option expiration. Look at the option chain and select call (or X number of calls) that will net $15 with ETF at $315 at expiration. Prior to expiration the option gain will be larger but that requires an understanding of option behavior along with an option pricing formula or software. | |
| Oct 2, 2020 at 7:42 | answer | added | Dbrooks | timeline score: 2 | |
| Oct 2, 2020 at 7:14 | comment | added | Flux | @BobBaerker Okay, so buying the ETF on 50% equity margin will do what I want. But I don't quite understand the part about options. | |
| Oct 2, 2020 at 6:25 | answer | added | CQM | timeline score: 1 | |
| Oct 2, 2020 at 5:01 | history | edited | Bob Baerker | CC BY-SA 4.0 |
added 5 characters in body
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| Oct 2, 2020 at 5:00 | comment | added | Bob Baerker | Standard equity margin doubles the return as well as the loss. For options, pick one that will yield a return equivalent to a 5% move in the underlying. | |
| Oct 2, 2020 at 4:13 | comment | added | Flux | @BobBaerker For example? Options? But how can I adjust the leverage to achieve the example given in the question? | |
| Oct 2, 2020 at 3:34 | comment | added | Bob Baerker | Buy leveraged financial instruments. | |
| Oct 2, 2020 at 2:57 | history | asked | Flux | CC BY-SA 4.0 |