Yes, with a straight long option which would be the only position, that is possible. But I'am asking about a Futures Spread. The second part you are mentioning is Dynamic Adjusting Positions, i have looked at that previously, but as you mention it will highly likely be not accurate, and it would be ...

Futures Spread - Contract  There is a  Futures Spread, Where the Margin reflects a Leverage of 3 to 1 ,  The Margin for the contract is just $ 210.  I ‘am Buying “ 1 Futures Contract September, Selling 1 Futures Contract December  ”  It is a Interest Rate Futures Contract,  There is a Spread of 0.2...

Hello,  What would be some good risk management methods for holding Trading Positions for 3 to 6 Months, and some 9 months or more for Options Contracts, that are holding a Long position of a Call or Put ?  f   A Bull Call Spread or Bear Put Spread are a way to customely create risk reward ratios,  ...

Alan, 

So what are the reasons you think it is a bad idea ?

Expand on what you said " collateralizing them to get/maintain your desired leverage " ?

Not a broad index, let's say for an individual stock or security.  For the Futures Roll, it is very risky like you said, you have to put margin and subject to margin calls, if the position goes against you. For a ETF Funds or other Funds, this is not a huge risk, as they would have the excess capita...

How would you devise and customize a 4 Times Leverage on a Stock Price downward movement using Options, that holds the position for 1 year ? ( to do this, i know likely rolling the option would be necessary, that is fine as well) Also, how would you devise and customize a 4 Times Leverage on Synthe...

Bearish, 

What do you mean by the "Exposure will be Locally the Same" ?

Mercadian,  Thanks, yes i see that 500 should not be there. the 500 is the cost of the Premium Paid for the option. I made the error there, the 500 should be subtracted when considering when closing the option position from a Profit/Loss. I would edit and delete that varible in the formula above, an...

Below are 2 Methods for calculating the Leverage of a Option Contract with examples. The first method is the standard method i have seen. the second method is what intuitively i would use in calcuating leverage. Method 1 It seems like the more referred way online to calculate Leverage for a Option ...