1. 50 shares of SPY @ $590. This might cost $30k, give you $30k exposure in SPY, and use no leverage.
1. 1 90-delta deep in the money LEAPS SPY call option. This might cost $19k, give you $60k exposure in SPY, and use 2-3x leverage.
1. 1 synthetic LEAPS in SPY (long call option, short put option). This might cost $2k, give you $60k exposure in SPY, and use 30x leverage.
-
1. 1 /MES future. This might cost $2k, give you $30k exposure in SPY, and use 15x leverage.
+
1. 1 /MES future. This might require $2k deposit (it costs nothing), give you $30k exposure in SPY, and use 15x leverage.
-
In all cases but the first, you are paying less to have a higher exposure in the same market. Each as a different risk profile.
+
In all cases but the first, you are paying less to have a higher exposure in the same market. Each has a different risk profile. In all cases you can lose money.
+
+
In the 1st case there is no expiration of a contract, so no matter what happens you have shares and can wait until the market moves in your favor. All other cases have expirations.
+
+
In the 2nd case, you can lose your initial $19k at expiration, but you will end up with 100 shares.
+
+
In the 3rd case, you can lose your initial $2k at expiration, but you will end up with 100 shares.
+
+
In the 4th case, it doesn't cost anything, but you can lose up to $30k if SPY goes to 0 (very unlikely).