what is your position on the laddered bull spread?
From your PM description, it sounds much too complex for my limited mental capacities. <g> Personally, I'd prefer to pick a spread with one long and one short leg only, set at strikes and expiration dates appropriate to my view of the underlying stock's likely price movement, and leave it at that. Trying to 'shotgun' a bunch of different strikes/expirations for the short side would certainly confuse me, especially in any attempt to figure out a remedial strategy should the underlying move against me.
If I wanted more flexibility than this, I'd certainly consider a simple diagonal spread (e.g., long X Julys, short X Februaries at a different strike). When the short leg expired or was closed out, I could then reassess where (at which new strike/expiration) I wanted to sell the 'next' short leg. That way I'd have only one spread going at a time, but end up 'reusing' the long leg many times over.
Agree with taxman that anything else sounds like your broker wanting more option commissions than a sound strategic move.
-Rose- |
