I did some calculations for buying SPY LEAPS versus leveraged ETF (like SPXL) and just wanted to run it through this sub:
SPY Jan 2024 Call 445 – around $5300 with the premium you can buy 49 shares of SPXL ($118)
Now it is just looking at the expiration date and seeing what happens if SPY closes 10-50 lower or higher. I calculate the profit as the SPY price in January 2024 minus strike price of $445 times 100 minus the premium that I am buying so : Option Gain/Loss = 100 * ($SPY_JAN2021 – $445) – $5300
and the calculation is straightforward for SPXL as that would be SPXL Gain/Loss = 49 * $SPXL_JAN2024 – $5300
If we assume that SPY is going up around 20% over the next two years then we will break even but if it turns to be negative then lose 100% on option but not as bad as with SPXL. On the gain sid, if it closes over 20% in next two years then options would be much more profitable of course.