Convexity, Options Trading, Volatility Trading, Moontower, Option Greeks.
borrow $25 out of the $50 it took to buy the stock). So if the stock returns 20% ($50 –> $60), you return 40% ($10 profit on a $25 outlay). In other words, the slope of your P/L with respect to the stock is 2x the unlevered return. Futures, since they are traded on margin, are levered. But like