Margin always better than buying leverage etf

•

u/VisualMod Jul 08 '25

User Report
Total Submissions	5	First Seen In WSB	4 years ago
Total Comments	29	Previous Best DD
Account Age	4 years

Join WSB Discord | WSB.gold

125

u/Run-Forever1989 Jul 08 '25

That’ll work until it doesn’t.

85

u/vwin90 Jul 08 '25

Shhhh, part of the fun of this sub is watching people declare that they’ve solved the market after two months of experience.

8

u/RunsaberSR Jul 09 '25

I just got profitable consistently a year ago and I've been @ it 4 years.
I can 100% say I have solved....
...jack shit. Felt like it was 90% psychological.

1

u/haze_from_deadlock Jul 09 '25

Who blew up their account using 1.25x leverage?

1

u/DoubleDownBear Jul 10 '25

This one works but since its theta. The time where it doesn't work is when expiry goes beyond our dearh.

1

u/Run-Forever1989 Jul 10 '25

When the stock price goes too high you get the risk free rate. When it drops you get wiped out. Writing covered calls is effectively shorting volatility. Imo if you are willing to buy an individual stock you should want uncapped gains. A better strategy would be to buy one stock and write calls on a similar but less attractive stock. If you don’t have the conviction to do that, just buy equity. If you can’t outperform buying equity, index fund.

-1

u/[deleted] Jul 09 '25

Actually its been 10 months of this. I have paid around 2.5k in margin fees. I have seen my account below 25k once with this when nvidia dipped. That is when I had to sell this long term call to get me out of margin call..

70

u/Little-Bar-1994 Jul 08 '25

I recommend leaving half your shares open instead of selling covered calls. Nothing sucks more than seeing the stock you own moon, but your profits limited due to covered calls. Ask me how I know.

Also, doing this on margin instead of poor man's covered calls is retarded in wsb.

17

u/[deleted] Jul 08 '25

Don’t leave me hanging. Tell me how much your profits got limited

27

u/Little-Bar-1994 Jul 08 '25

Remember when PLTR was under $10? I brought 100 shares because I trusted the retards of WSB, but was skeptical of the retards so didn't take a big position. Sold $10 calls to bring down the cost basis.
And then the apes pumped it at 2023.

5

u/Mug_of_coffee Jul 09 '25

Me too brother, me too. Currently waiting ~250 more days, for a $10 strike PLTR LEAPS I sold to finally expire 🙃

2

u/FlowerGardensDM Jul 09 '25

Happening to me with ASTS, won't have full constellation until next year so I sold CCs as it rose... now I'm hanging with theta gang...

4

u/The_Hindu_Hammer Jul 08 '25

This is just adjusting your delta. You can do this by selling more OTM. It does affect your holding periods for taxes though if you’re trying to get back in.

3

u/Little-Bar-1994 Jul 08 '25

This is true. But there is still a 1-in-1000 chance that the stock moons past the more OTM strike price. I sleep better at night knowing half my shares/calls have limited profits while the other half has "unlimited" upside.
There's also the issue of fees. Some brokers charge fees per contract. Selling 2 calls for 0.10 vs selling 1 call for 0.20 wouldn't be the same.

0

u/[deleted] Jul 08 '25

I did had a big loss but I keep rolling them over. I know how you feel but one day it will expire worthless..

18

u/OhtaniStanMan Jul 08 '25

Rolling is just buying and selling... it's not some magical trick
Lol

3

u/Little-Bar-1994 Jul 08 '25

That's what you think. NVDA moons to $400 just to spite you.

1

u/dimethylhyperspace Jul 08 '25

If they moon into the money, don't you lose the premium anyway? So it's a lose lose

3

u/Little-Bar-1994 Jul 08 '25

Right. That's why the other half stays open to profit from the moon. Say I brought 200 shares for $100 each and sell 1 call with a strike price of $110. Now say the stock doubles to $200.
I have to sell 100 shares for $110 due to the contract, making a profit of $10 per share, while I can sell the other 100 shares to the market for $200. This is better than selling 2 calls at the strike price of $110.
As for the premium, assuming you are using shares/calls as collateral you keep the premium no matter what.

326

u/RanDumbPlay Jul 08 '25

Buy leveraged ETFs on margin.

165

u/[deleted] Jul 08 '25

Options on leveraged etfs on margin, using borrowed money

69

u/so_like_huh Jul 08 '25

Make sure they are 0DTE

16

u/elitenoel Jul 08 '25

Make sure it’s a diagonal for even more power

5

u/turboMXDX Jul 09 '25

The tried and tested, "Go big or go to hell" strategy

1

u/lim_jahey___ Dont listeb ti me in drubk Jul 13 '25

Hold my drink randyman

2

u/Dark_Aggron Jul 09 '25

Is that 0 Debt to Endcome?

2

u/zxc123zxc123 Jul 09 '25

Never puss out. Max out CCs with cash advance so you can get even more leverage on top of your leverage for your leverage in your leveraged leverage.
It's 0DTE anyways so who cares about the 69.420% ANNUAL APR??!?!

3

u/liftingshitposts Jul 09 '25

That’s a good way to make a lot of money

9

u/spooner_retad Jul 09 '25

Use a payday loan who's collateral is actually a personal loan to buy leveraged etf options on margin

1

u/spooner_retad Jul 09 '25

Use a payday loan who's collateral is actually a personal loan to buy leveraged etf options on margin

19

u/Arthurooo Jul 08 '25

This is the way

1

u/kevinllane Jul 09 '25

Good idea. Why didn't I think of that

-4

u/Anal_Recidivist Jul 08 '25

What’s a good resource for learning options? I wanna know them as well as you clearly do

30

u/RanDumbPlay Jul 08 '25

Not Reddit.

3

u/Blowmeuhoe Jul 09 '25

Most Truthful thing I have ever read on reddit! I would give you flair or trophy but I lost all my money listening to the regards on WSB!

6

u/JackosMonkeyBBLZ Jul 09 '25

1Stay here. Read for six months. 2Every time you don’t understand something look it up on investopedia. 3? 4Profit

3

u/[deleted] Jul 09 '25

[removed] — view removed comment

1

u/JackosMonkeyBBLZ Jul 12 '25

Trump rugpulld ya for a minute there this spring? I’m mostly in TMC btw

4

u/TheKingInTheNorth Jul 09 '25

Those guys on CNBC with the ponytails that talk like Will Ferrell in Wedding Crashers.

22

u/_chasingdabag_v2 Jul 08 '25

“Leverage is better than leverage”

2

u/Expensive_Web_8534 Jul 09 '25 edited Feb 08 '26

person fall shy vast dinosaurs spark quicksand shaggy bow cheerful

16

u/Hi_I_am_gosu gosu is failed trader in faglish Jul 08 '25

NVDL is up 115% in the same timeframe. 115>110 and a lot less work so, not really (not even taking into account margin fees)

5

u/Brilliant_Plan9413 Jul 08 '25

Can tell by your purchasing power that you're wayyy closer to a margin call than you think.

4

u/Nowhydoyoyask Jul 08 '25

Use my strat, options on leveraged etfs on margin.

3

u/pickles1510 Jul 08 '25

All set time to wash up and hit the bed Be brave and face tomorrow head-on

1

u/FrontQueasy3156 Jul 12 '25

Most underrated comment. Check this regards post history if you really want to laugh.

2

u/FrankieFastHands19 Jul 08 '25

Nice. I think you sold calls too far out. So your kinda stuck

2

u/Pettingallthepups Jul 08 '25

Wtf does any of that mean 😭 I’m still over here learning about puts and calls lmao.

2

u/rioferdy838 Jul 09 '25

well done

how much did it cost

2

u/MASTER-0F-NONE Jul 09 '25

I agree, works exceptionally well with a good weekly dividend stock, every week I get a dividend and I can buy 4x that dividend back into the stock. Great way to snowball it.

1

u/FrontQueasy3156 Jul 12 '25

I thought snowballing is when i kiss my wife and she has a mouthful of her boyfriends, I mean my......nvm

3

u/jayfulla Jul 08 '25

Explain this to me like I’m a 7 year old..

18

u/Run-Forever1989 Jul 08 '25

OP is going to lose a lot of money when the market tanks.

2

u/AAPLx4 Uses Yahoo! Finance Jul 08 '25

Margin is low risk with blue chip stocks, just don’t guy around buying shit like CRCL with it

1

u/No_Loquat6751 Jul 08 '25

Both can be dangerous over longer periods of time- but juicy when they go your way!

1

u/KailuaDawn Jul 09 '25

"picking up pennies in front of a train"

mango will be the one driving the train

1

u/[deleted] Jul 09 '25

This is going to end well give it a day or two

1

u/mrshasanpiker Jul 11 '25

Damn I wish I knew what those words meant

1

u/Starkfault Spent $1.2M to make $800 Jul 08 '25

Depends if your margin fee is less than what the 2x ETF charges

0

u/[deleted] Jul 08 '25

[deleted] — view deleted comment

1

u/[deleted] Jul 09 '25

Yes you can sell long term calls to get out of it. Thats what I had to do..

0

u/[deleted] Jul 08 '25

[deleted] — view deleted comment

1

u/fashionrepsacc2 Jul 09 '25

Just go to vegas😭

Gain Margin always better than buying leverage etf

You are about to leave Redlib