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Then, next time the stock trades above 1.55 times known book per share, take the profits on the calls and use all the proceeds to buy plain stock again, ditching the leverage.
So, you're invested all the time, but pile on a little leverage when the outlook is particularly good.
The only problem is if the stock remains low for too long and the option gets close to expiration. Then the leverage doesn't pay off nearly as much, if at all. The advent os LEAPs has helped in this regard, but they are also more expensive because of all that extra time premium.
