So this crossed my mind today. I have access to a fairly large margin balance (which I traditionally have never used); one of my long term goals is to invest heavy in a high dividend return fund (qyld) and I am waiting for $1m to do this.
My question is, why shouldn’t I invest my margin available balance in this stock? Besides the call risk due to a large dump, are there any other glaring reasons I shouldn’t take interest off the margin balance ?
Asking for a friend ….. thanks
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