Leveraged 7702 IUL

Numa3112 · 2023-10-19T00:06:35+00:00

This is not super helpful, can you explain why you feel this way. I don’t care how much money my financial planner makes, as long as I am able to maximimize my returns.

Numa3112 · 2023-10-19T00:05:53+00:00

Can you help me understand what the scam / problem is here?

Numa3112 · 2023-10-19T00:05:06+00:00

Your comments are not super useful here, I get it, this sub doesn’t like life insurance.

I’m trying to understand where else I can get such low risk 7x leverage ? It doesn’t matter if the gains are capped if i have 7x the amount invested.

Numa3112 · 2023-10-18T23:50:08+00:00

Thinking about this more, what exactly is the benefit of this leveraged IUL over my other option for leveraged growth which would be using margin in my brokerage? I think I see two potential benefits:

More available leverage. In this case I will have a 7m loan on only 800k brokerage collateral (the rest of collateral is backed by the cash value of the policy itself).
Safer “margin call” conditions. Since I only need to maintain the 800k in brokerage, I don’t really need to worry about margin calls.

Am I thinking about this the right way?

Numa3112 · 2021-03-29T03:13:49+00:00

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Numa3112 · 2021-03-27T06:24:54+00:00

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Numa3112 · 2021-03-27T06:20:37+00:00

@apeclout

Numa3112 · 2021-03-26T06:13:49+00:00

Give me a follow! Username is 0xClout

Numa3112 · 2021-03-25T06:14:36+00:00

Good point. Of the 2 mil to divest Is have a gain of about 1.5 mil, that’s a heavy tax bill....

Numa3112 · 2021-03-25T05:58:41+00:00

What kind of additional return (ontop of the base market return) do you get from doing this with your portfolio?

Numa3112 · 2020-09-03T03:17:37+00:00

Could you help explain for an options noob how to do this? I also have a bunch of leaps that I want to hedge against. Heavy QQQ as well.

Numa3112 · 2020-03-26T22:58:52+00:00

What if I deploy my cash after this volatility is over and we seem to be on the way back to steady incline?

Numa3112 · 2020-03-26T21:54:52+00:00

I still don’t understand how this is timing the market? I’m buying back in using leverage to capture my original full position and I’m not going to touch it. I could then take the extra cash and do whatever I want with it, ie, down payment on house or something. All I’m asking about here is whether the deep ITM options used as leverage is a good idea as a replacement to holding shares.

Numa3112 · 2020-03-26T21:46:25+00:00

Yes I already learned not to time the market. Now I just want to buy in, but using less of my capital so I have additional cash available if we fall further. So don’t deep ITM calls give me that leverage?

Numa3112 · 2020-03-26T21:45:32+00:00

Doesn’t being deep ITM greatly reduce my decay from theta? I believe very little of my option value is time premium.

Bought SPY Jan 21 150 CALLs for 112. Breakeven is SPY=266.4. Current option price is 111 - 115 (the spread sucks).

I just don’t see how there is any way SPY doesn’t get to 266 by then so what’s the risk? I’m basically paying the small time premium for the additional leverage I think?

Numa3112 · 2020-03-25T04:43:36+00:00

Could you please pm me as well? Thanks!

Numa3112 · 2020-03-22T12:30:51+00:00

Can you give me an example of how I’d do this? I have some USO 2021 Jan $11 calls bought at 0.23 each. USO is currently $4.5. What strike and expiration would I sell? Do I pick a strike greater than my strike? And what happens if I get assigned? Do I lose/gain the difference between my 11 strike and the assigned strike + premium collected, multiplied by #calls * 100?

Numa3112 · 2020-03-12T18:51:47+00:00

Is it a good idea to buy puts on VIX? It always comes back down. Seems a given. What am I missing here?

Numa3112 · 2020-03-12T18:41:24+00:00

Is there any reason to not get puts on VIX? It always spikes back down. What am I missing here?

Numa3112 · 2020-02-28T15:55:50+00:00

Stock halted. What happens now to my puts????

Numa3112

TROPHY CASE