No. of Recommendations: 11
Hmmm, if I were feeling a bit light on LEAPS due to selling in the summer, would this be a better than average, neutral, or worse than average time to sell stock and buy 2026 Calls?
If you're keeping the total number of shares of exposure the same, selling X hundred shares to buy X calls, this is probably not a bad time.
Stock price high-ish, market calm. A good day in general to be a net buyer of time value.
The only fly in the ointment is that I think interest rates are going to come down, so the rates built into the calls might (?) be better some time in 2024 than they are now (mostly 6.5-7.5%). Or not--hard to say.
Conversely, if you're thinking of using all the stock proceeds to buy calls--as an addition to your total position size--no, I don't think today is a great day to do add. The stock isn't cheaper than average today, so I don't see it as a particularly auspicious time to add to your position. I have a hunch (worth no more than the money it's costing you) that the stock price may be lower in absolute terms some time in the next year. Kind of a bummer for me, as I would like to be adding--I have a "liquidity event" coming next month and for me the best thing would be a tanking price so I could load up at a great entry. I hope nobody minds if I hope for a brief crash?
Jim
