LEAPS Call Strategy — Poor Mans Covered Call
Poor Mans Covered Call: buy deep ITM LEAPS (0.80 delta, 12+ months), sell monthly OTM calls against them. 3-5% monthly return with much less capital than shares.
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ORIGINAL POST
LEAPS Call Strategy — Poor Mans Covered Call
Buy deep ITM LEAPS calls (0.80 delta, 12+ months out) as stock replacement, then sell monthly OTM calls against them. Dramatically less capital than buying shares. Target 3-5% monthly return on LEAPS cost. Choose stocks with low IV for LEAPS purchase and sell calls when IV spikes. Use on stocks you are long-term bullish on. Portfolio allocation: max 10% per position.
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