this is probably a stupid question but i’ll ask anyways: how do you define leverage? obviously trading on margin or using derivatives to get >100% exposure to an asset, but what if it is for hedging? i.e. covered calls or collar strategies? a long / short portfolio or market neutral strategy with derivatives?
boston i know which question you are talking about. I think leverage implies borrowing assets to invest. Options have implicit leverage. I might be wrong
Hmm, how about any method whereby you gain non-symetrical exposure to underlying assets? One Schweser answer said that selling a credit option was a way to “leverage credit exposure”