Subject: Re: A strategy I read about
The strategy as described was based on very unrealistic estimates of the cost of the leverage. It isn't going to be anywhere near 1%.

Yes. That 1% claim was absurd. It makes me suspect that the author had never done the strategy, just pulled figures out of thin air. A lot of investment authors clearly just make stuff up.

FWIW, in 2021 I was seeing implied interest rates in the range of 2.5% - 3.7% on BRK.B calls. But in 2023 & 2024 they are 6% - 6.5%.

The rates on these SP500 calls were 3.8% (XSP) and 4.0% (SPY).