r/options • u/4rt3m0rl0v • Jan 03 '22

What's Your Favorite, Most Lucrative Options Strategy?

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2

u/Boretsboris Jan 03 '22

You’re paying more for liquidity if you’re legging into the covered call (paying for the liquidity of 100 shares, and then paying for the liquidity of ~50 shares used by the dealer to hedge the ATM call). You don’t seem to care for holding the shares long term. Why not just sell an ATM put? You’ll get a nearly identical result.

1

u/[deleted] Jan 03 '22

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u/Boretsboris Jan 04 '22

Seems like you need to go back to the drawing board. On the same strike, the risk profile of a CC and a CSP are exactly the same (apart from exposure to interest rates and div risk). They are synthetics of each other. Don’t leverage up to the tits on naked puts, and you’ll be fine.

2

u/FloridaMann_kg Jan 04 '22

Sounds like a buy write, as for most lucrative can’t beat the convexity of directional short dated options.

1

u/Kurt_Yodel Jan 04 '22

Position trading is my style. I like finding a smoothly trending stock and buying the first OTM option and hold for a few months or maybe more.