I plan to write somewhat deepinmoney calls against Q shares in spring
agreed writing outofmoney calls offers little protection
I like somewhat deepinmoney calls, with delta of 80-90%
I dislike outofmoney calls, with delta of 30-50%
lastly, choosing written calls two months away
if my intention is to hedge, and buyback cover regardless
if QCOM hit hard, then outofmoney 2-month out calls protect
this past week, for instance, how about the Feb130 or Feb140
I am not talking about riding those suckers out to expiry
I am talking about hedging my positions
want to neutralize for 5-6 weeks
this past week, Feb130 would have offered 85% thereabouts
this spring, much different scenario
say at end of March, we are at 260-280
suppose got 1000 shares, for instance
considering for such situation selling 10 June200 calls
that should offer 80% delta at least
the deeper inmoney, the higher the delta even if two months out
deepinmoney calls strip out premium, offering good delta
appreciate any discussion continued
/ Jim Willie |
