My understanding is that the same isn’t true of OTM options. Also, you know your costs up-front as Paul explains below.
Another benefit is that spreads are much smaller.
On more than 2:1 leverage unfortunately I haven’t done the analysis. I’d start by looking at 2yr option prices on interactive brokers and working out the implied costs to construct a synthetic long.
Sorry, my mistake, I mean about 2x.
My understanding is that the same isn’t true of OTM options. Also, you know your costs up-front as Paul explains below. Another benefit is that spreads are much smaller.
On more than 2:1 leverage unfortunately I haven’t done the analysis. I’d start by looking at 2yr option prices on interactive brokers and working out the implied costs to construct a synthetic long.