I've been trading spy and qqq options and was seeing others trade spxl and tqqq. I know these aren't as liquid as the real things but wouldn't these be better for risking the same amount of capital if I'm correct on a trade?
Pros and cons of leveraged ETF options
byu/subster9 inoptions
Posted by subster9
1 Comment
> wouldn’t these be better for risking the same amount of capital if I’m correct on a trade?
No, the leveraged ETF options are more expensive than their non-leveraged ETFs, 3x leverage = 3x higher IV in most cases, so your exposure stays the same.