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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (2219)	12/30/2020 9:17:14 AM
From: Debt Free	Read Replies (3) \| Respond to of 2591

I am kinda in the same boat (quick gain on a LEAP). I bought some T and sold a Jan 2022 LEAP against it. The plan is to hold until maturity (playing around with tying money up for a year as an alternative to the measly CD rates available). Because of timing, I will collect 5 dividend payouts in addition to the premium on the option. In addition, this is in a regular maybe taxable account and if I hold the option should be considered a long term gain instead of short term. However the stock is already lower than my purchase price and the value of my call is down ~30% and I am tempted to buy it back. The Stochastics are bottoming and it appears that in most cases recently it has been a good indicator on the price bottoming as well. I have 1-2 weeks to decide if I want to hold for greater than a year so we will see. They say that patience is a virtue ......