Clever approach. I focus on LEAPS calls as leverage to the underlying price changes. It works pretty well with volatile assets like commodities, miners, energy, and EM stocks.
I agree. DITM LEAPS on stocks like $NOC or $MELI are prohibitively expensive for accounts below $1 million.
I like DOTM LEAPS; the convexity is more pronounced (if the strike and expiration are picked prudently), and the time decay is smothered (at least in the first half of option life).
I like covered calls and synthetic covered calls.
I find a good company and benefit from price appreciation, some times dividends, and time decay.
The premium I receive reduces my risk and cost.
Clever approach. I focus on LEAPS calls as leverage to the underlying price changes. It works pretty well with volatile assets like commodities, miners, energy, and EM stocks.
That's an excellent strategy. There's only only problem with LEAPS.
A deep in the money LEAPs could account for 10 to 25% of a small account.
I agree. DITM LEAPS on stocks like $NOC or $MELI are prohibitively expensive for accounts below $1 million.
I like DOTM LEAPS; the convexity is more pronounced (if the strike and expiration are picked prudently), and the time decay is smothered (at least in the first half of option life).