You will need to apply for undefined risk options trading ability at your brokerage to do this because it involves selling a put (i.e. naked put).
-
Here is a simple example. Assume I have $100k invested in plain equities. I want to leverage up to 1.3 to invest in US large cap. I setup an ATM synthetic long 1 year out in SPLG (a lower cost version of SPY):
+
##### Example
+
+
Assume I have $100k invested in plain equities. I want to leverage up to 1.3 to invest in US large cap. I setup an ATM synthetic long 1 year out in SPLG (a lower cost version of SPY):
- 4 SPLG 2026-03-20 71 Call
- -4 SPLG 2026-03-20 71 Put
@@ 146,7 148,9 @@
### Futures as leverage
-
Here is a simple example. Assume I have $100k invested in plain equities. I want to leverage up to 1.3 to invest in US large cap.
+
#### Example
+
+
Assume I have $100k invested in plain equities. I want to leverage up to 1.3 to invest in US large cap.
1 /MES futures contract has a notional value of 5 * index price. Currently that is $30k. To buy this contract, I am required to set aside $2500 as a good faith deposit for the contract.