Originally Posted by utrecht
Wow. I don't even know how to respond to that. Your friend sounds like a complete and utter fool, but at least he has a cool story to tell his grandkids.
Yes, not monitoring an account while on a high % of margin is pretty crazy.
Sorry, I didn't mean to distract from your posts with option war-stories. Options and margins are tools. Tools can be used correctly or carelessly.
I've also occasionally bought a relatively small amount of deep ITM calls when I felt like speculating on an issue. It's much the same as using margin, the premium effectively replaces the borrowing cost. Premiums on deep ITM calls are pretty low, and your max loss is defined. A deep ITM call will move in-sync with the underlying issue (minus the premium), and you just pay a %, plus that small premium. This allows one to speculate in an IRA, where you can't do margin. Obviously, this is dangerous on a large scale, but if you want to play with a small amount w/o liquidating something else, it is an option (no pun intended).