Comment by Frank Grimes (frank-grimes) on Tail SP 500 Call Options · 2025-01-26T23:12:05.108Z · LW · GW

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. 

Comment by Frank Grimes (frank-grimes) on Tail SP 500 Call Options · 2025-01-26T01:49:50.183Z · LW · GW

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. 

Comment by Frank Grimes (frank-grimes) on Tail SP 500 Call Options · 2025-01-23T17:00:37.680Z · LW · GW

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.