Posted by ruscitti on 24th of Oct 2021 at 05:32 pm
One thing you can consider is to sell a higher strike call
against your long call position. That helps a little with
time decay, particularly over a long period. With a long call/
short higher strike call position, you can also consider
periodically trading in and out of the sold call position to
further enhance your performance. I've done that with shorter
term options (I have never traded LEAPs), but I can't think why
this wouldn't work with LEAPs. Bid/offer spread would
probably be a consideration. If LEAPs were less liquid,
trading in and out would be more expensive. The nice thing
about this strategy is that you can employ it even in tax deferred
accounts (401-k/IRAs).
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One thing you can consider
Spy LEAPSI don't have much experience with options other then ...
Posted by ruscitti on 24th of Oct 2021 at 05:32 pm
One thing you can consider is to sell a higher strike call against your long call position. That helps a little with time decay, particularly over a long period. With a long call/ short higher strike call position, you can also consider periodically trading in and out of the sold call position to further enhance your performance. I've done that with shorter term options (I have never traded LEAPs), but I can't think why this wouldn't work with LEAPs. Bid/offer spread would probably be a consideration. If LEAPs were less liquid, trading in and out would be more expensive. The nice thing about this strategy is that you can employ it even in tax deferred accounts (401-k/IRAs).