I am glad I only have 10x of them.
I asked the other day about what are you guys doing with your LEAPs mine should be up 100% after today and I bought them in July. I see lots of you talking about going to LEAPs right now but I don't understand the logic when the stock is at AH. The IV is low I get that but I am here considering to actually close them but I do wish the IV was higher lol. When would you guys consider taking profits on those LEAPs? I think
@adiggs @pz1975 have similar LEAPs to the ones I have Jun 23 550-500s.
My general plan is to hold the leaps to expiration and sell them then. I have a pile of leaps from June 2023 to Jan 2024. I've seen
@Lycanthrope talking about rolling them up to take cash out. I've also considered rolling to a longer date and higher strike to get more of them (it's the same thing really - just spending the cash to buy more/replacement leaps).
For me these are not trading assets. I bought them thinking leap covered calls, but in practice its replacement shares. I buy share replacement long dated leaps when I'm buying calls; otherwise I stay away from buying options
Here is the problem with spreads. As the SP gets close to the short leg, the difference between the short and long gets really large. Worse with $100 spreads than $50 (obviously). This week could get interesting..., and expensive....
This is one of those things with at least 2 points of view. The reason that I prefer the $100 wide spread over the $50 wide spread from a risk management point of view is that the wider spread behaves more like a short put. And I already have lots of experience with short puts, so that knowledge base is already in and helps me be successful with these BPS.
I do understand your point of view and its wisdom. It's just not (today) how I think about and manage these.
I opened the day almost completely out of any option positions. I was semi-expecting a pull back that I'd be able to sell a BPS into but that didn't happen. I'm definitely not opening any covered calls the way the shares are going.
I'd like to open BPS but I consider the likelihood of a regression too high, so I've decided to continue watching from the sideline. For the first time since I gave myself permission to not be in the market a few weeks each quarter, I'm really glad that I did that
. Whenever the share price settles back down there will be a new trading range to sell options around, and I can wait for that to come (whether it's a day or two, or a week or two).
