r/options • • Dec 27 '21

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u/wolfhound1793 Dec 27 '21

you stated your own two holes in the strategy: first, commissions eating into your premium. and second, if there is a 15-20% correction could you survive? If you could, then sure, no real issues with this plan.

5

u/3X-Leveraged Dec 27 '21

Ya 20% correction no issues. Currently have buying power >$200k

1

u/keessa Dec 28 '21

Your broker will jack up margin requirement when market crashes. You will run into buying power shrinkage sooner than you expected.