Account was $1.1M ($520K in gains) with $4M borrowed six months ago. I made more than +$200K since then and borrowed an extra $250K so now the account is worth nearly $1.4M with $4.25M borrowed:
Ending Value – Net Contributions = +$736K of gains
I am borrowing $2.1M with box spreads (options), and another $2.15M with treasury futures for extra leverage. That's 4:1 leverage, so this $1.4M account has exposure to about $5.6M in assets.
Often I get asked "So when will you delever and stop?". And I really don't know. It makes so much money that it's hard to want to stop.
When I started. The guide. Positions. How I am up more than twice as much as the market.
Borrowing $4.25M in Derivatives (Please Help Me Stop)
byu/Dry-Drink inwallstreetbets
Posted by Dry-Drink
25 Comments
Market might crash soon, be careful if you’re leveraged. Otherwise if ur optimist go with nvidia or an etf like spy or qqq.
^this is not Financial Advice
These numbers are insane to me
Guy is the real life banker from squid games
Stop
Sounds like you’re winning, keep going. Even if it goes to shit that’s their problem.
Stop while ahead.
On tonight’s episode of What could go wrong?
You’re asking WSB for advice? smh
if you know you should stop, just stop.
its fucking simple. buy a condo with the profit and rake in 3k a month for life.
it might sound too simple, but have you ever considered having a target/goal that _does not move_? SL/TP and then GTFO…btw congrats and f u
edit: i realized this is wsb and not investing so you do you!
Well carrying such a risk through NVDA earnings season is rather insane. But on the other hand your insanity worked well for you so far. Just be aware, that you are driving down a highway with 200mph – one eye blind and the other tearing up. Of course nothing went wrong so far – but that is not a sufficient predictor for the rock behind the next corner
Can not give you any advices because I’ve never seen so much money ever in my entire 30+ years lifetime 💀
I’m so poor 😭
I understand the box spreads but wdym using treasury futures for leverage? Looks just you are just long futures
Why would you stop, I work in futures industry and this is common to do box spreads with billions in play. Just because you are extremely leveraged isn’t a bad thing. I’m curious what your cost of borrowing is as well as associated costs with implementing the box spread.
Genius move! I see no downsides please carry on 🍀!
can’t stop wont’t stop gamestop.
Interesting. With your returns you can pay the higher costs in the box spread we see right now in the market. What’s your strategy on rolling them? You pay the boxes back at expiry? You have to close positions for this. I’m curious into how you actually have to manage this portfolio. Nice find! Enjoy your gains.
You need to see a therapist & talk to God
idk how i feel using 1:4 at pretty much the top of the market dawg but u seem smarter than i am so do u do
smarter considering u did make money…. and i didnt..
oh man, i cant wait to see your loss porn. it will happen. and you will get rekt. and I will be there.
First, congrats on your returns. This serves as inspiration and will probably study this topic deeper.
I followed your links below and in one of them you mention not to leverage more than 2:1, and calling more leverage “overbetting”. I think there is your answer! Just move part of your profits to a safer, more conservative investment thaat can yield you a monthly cash flow (e.g. real estate, dividends) and that’s it.
You’ll stop when you OD on cocaine.
Never. Fucking. Stop.
Screenshot = Sell
Lol