Buying stock in an IRA can be expensive, so can we get the same metrics by simply going long a call option that’s deep in the money while saving on buying power? Although we save 87% on buying power for a long 95 delta call, it costs us around $2 in negative theta per day to keep the position. Over the course of a year, this can add up to $720 if the stock is unchanged. For stock, there is no negative theta to worry about.
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