Tell me where I am looking at this wrong. Say I have a 100K account and I want to make a 10% gain on a 2% investment in the account. The investment would be $2,000 for a gain of $200.
As a comparison to what I am about to write, I just closed out a 2 day trade on BOIL that netted me 7.4%. Not 10%, but close.
Let's say I want to take you up on your plan. In my assumed $100k account I would normally invest 2% or $2,000 and if I expect a 10% profit that is $200.
To make $200 with the TNA option you described with each option having the profit potential of $50 would take 4 options. For 4 options the loss is $2,000 ($500 each option), the same possible loss for buying BOIL. The difference is probability of total $2,000 loss on the options is very high whereas a loss of even 10% on BOIL is very low.
Maybe this is how the big trading houses (and you) make very good money, but for me it is too risky.
Trade the Charts and not the Heart - Expect the trend to
continue until it doesn't - Realtime is the real deal
