/biz/ - Business & Finance

>>50108211
There's no "liquidation" with leaps, you just lose the entire debit if they expire worthless. If you get deep ITM ones they'll have little extrinsic value so theta decay and IV crush aren't a big concern. Deep ITM ones are expensive though but still cheaper than 100 shares.
Also chop loss is not the huge threat people act like it is, skim this:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701

The biggest problem with leveraged ETFs is that Proshares or Direxion can shut it down at any time, and they'd be more motivated to do so during an extended bear market because the outflow and low Assets Under Management can make it unprofitable to run.

THE FUCK WAS THAT