To get more exposure to SPY I think you could purchase a levered ETF, purchase more SPY on margin, or at the very least buy a call that has a real amount of delta and gamma. I think that AI related stocks like NVDA probably have more exposure to AI than something that just reflects the broader market.
Frank Grimes
Karma: 6
If you think SPY will go up because it’s gone up historically, there’s more direct ways to get leverage on SPY than buying a 2030 call. If all you thought was that AI will change everything, SPY doesn’t seem like the right thing to buy—wouldn’t you want something with more exposure to AI?
Edit: I also am not sure the returns of SPY in like 1974 have any predictive power on the returns of SPY next year.
Listed options are secured by the Options Clearing Corporation. I don’t think they’ve ever failed to secure an options trade, including through covid and the 2007-8 financial crisis. I don’t think this is the biggest concern about the trade.