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
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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