Why are so many funds juicing longs and shorts with options?
Would’ve thought you could get cheaper leverage through prime. I’m thinking of Maplelane and Melvin here
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You sure they’re not tail risk / crash hedges(?)
Trading quarters
Define cheaper leverage?
If I buy a $100 equity, my haircut is probably 10-15% best case and I pay OBFR+30 on the 85-90%.
If I buy a $100 strike call on the same stock, I may pay $1-2-5 depending on vol, expo, etc which is 1-2-5% of notional and the “leverage” is free.
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