(03-10-2020, 09:59 PM)NilesMike Wrote: Fenders if you're going to buy call LEAPS, sell a nearer month call above the market. Both will have the same impact from whatever the volatility is and the nearer month will decay faster.
(Buy your LEAP with a 70 Delta or greater, several strikes ITM)
Synthetic covered call is the strategy
I am definitely going to run my selections past you Mike. You have a much deeper understand of the Greeks. I definitely plan to over think this lol. I will NOT be happy if I lose it all and add to my beat down I took the past month. This whole idea is VERY much contrary to my conservative approach to options. There is a good reason my normal option strategy wins at such a high percentage. I don't need to hit five home runs here, but I'm not looking for 2% monthly return either. I will sleep best if I mitigate the risk some.
-I don't plan to wake up some Monday morning feeling lucky and buy all positions at once. I will surely miss the timing some so staggering/laddering most anything I ever do in investing usually ends up the better course. Unless I get lucky, I will leave the positions the same way as I'll be wrong on the exact timing that day too.
-I will diversify into several sectors. FB and PG aren't likely to move the same week/month.
-No commodities! I don't want to be left hoping the market, a presidential election and Saudi all cooperate at once. I might as well bet on the weather next Christmas lol.
But first I need to wait for Otter to be quarantined on a cruise ship with a case of the the Carony during a hurricane so we can get closer to max pessimism lol.