Naive question, but if you are switching every friday between hold and money, assuming you are already holding, why not switching between leveraged puts/calls then?
Hello and please note, you are getting the email weekly, but the actual switch happens on average once a year with maximum of 4 switches in 2010. Some years there was no switching at all... Thanks a lot for the question and sorry, I guess I did not explain this more clearly...
Well, if the model is 51% correct, and your client matches "extreme risk" profile... would you recommend leveraged put/calls? Hypothetically.
I have not tested this, so I cannot recommend it one way or another, but I am taking notes and will test it in the future... Thanks a lot for the interest and the idea.