Frank Grimes

• Frank Grimes 26 Jan 2025 23:12 UTC

  17 points

  6

  in reply to: Neel Nanda’s comment on: Tail SP 500 Call Op­tions

  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.

• Frank Grimes 26 Jan 2025 1:49 UTC

  1 point

  0

  in reply to: Zak Miller’s comment on: Tail SP 500 Call Op­tions

  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 23 Jan 2025 17:00 UTC

  2 points

  0

  on: Tail SP 500 Call Op­tions

  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.