I’m looking to recreate a leveraged position on AAPL (approx. 5x) using options, similar to how a leveraged ETF would track daily movements, but I want to avoid the daily reset/volatility decay of ETFs if possible.
My criteria are:
Leverage: \~5x effective leverage (omega).
Theta: Minimal decay. I want to hold this for a few weeks/months.
Tracking: High correlation to the underlying price.
I know deep ITM LEAPS (80+ delta) are a standard way to emulate a stock replacement, but they usually only offer 2x-3x leverage. To get 5x, I have to move closer to ATM, which kills me on Theta.
Is there a specific structure (e.g., ZEBRA, specific spread width, or rolling strategy) that effectively hits 5x leverage while minimizing extrinsic value decay? Or is 5x simply too high a target to achieve without accepting significant Theta risk?