Need advice -
I have to put money down for a large purchase next week, which I have, but it is protecting my margin from a large SP drop. The money I had coming in from the Honda sale is going to be another 4-6 weeks. I'm trying to figure out how I can safely increase my margin, without losing a lot of money.
Option 1) Buy Puts, but that will probably waste money.
Option 2) Risk it since I will have enough margin for a SP drop to 120 (assuming Fidelity doesn't increase the Margin for shares from 50% to 60%)
Option 3) Find a way to hedge. I could sell 5000 shares, and buy 50 Jan 2024 380 strike calls. I think that if the SP goes up or down, the movements will be pretty well matched (Delta 0.12), so that I can convert back in a month to shares. (If the SP drops, the calls will be worth less, but I will be buying the shares back for less. If the SP rises, the Calls will have a profit I can use to buy back the shares at the higher price).
Anyone NOT like Option 3? IT seems like the best option to me. Do I have the hedge correct?
Edit - My math is wrong. I would need 500 calls I think... That gets expensive.