No. of Recommendations: 2
I’m thinking of buying the 2027 leaps with a delta of about 80 and then selling weekly OTM calls on strength in the stock. When the 2028 leaps come out, I’d roll my leaps to that and keep doing that every year when the new leaps get issued.
I bought one $410 leap on Monday morning for $99.75 and I sold the $470 weekly for $1.30. I figure the weekly will usually expire worthless but when it doesn’t I’ll just roll it up and out to the next week. When I take a loss on the weekly, it will mean that the leap is doing well and I’ll just make back the loss on next week’s call.
I’m just thinking that I can make great returns selling the calls against the cheaper leaps, so I should do ok even in a bear market.
