Call option version of PP

[Rjg]

For a vp what if you bought at the money call options on gld, TLT and vti one or 2 months out? A small uptick in any if the underlying could boost the option value by more than enough to offset losses in the other 2. And watching the components of my pp bounce around I've realized this is quite possible in the timespan of 2 months or so. Anyone tried this? It's also a way to benefit from implicit leverage while using some pp principles for short term gain.

[Gosso]

I wasted a lot of time researching this topic.  I came to conclusion that it wasn't worth the hassle, and would likely hurt performance once taxes were factored in.

What is your goal?  Do you want a 10x levered PP?  Or are you looking to place more funds in cash, while allowing the options to provide the returns, ie 10% in options, 90% in cash?

[clacy]

I think if money is going to be made with options and the PP, it might be better to look at the short side. I think you could make some serious returns writing options instead of the buy side. The problem with shorting options is that you may make 20-30% returns for a decade and then blow up in 6 months if the portfolio took on a 20-25% drawdown