HOLD DEEP OTM CALL OPTIONS AT NO COST
For those that want a higher profit curve when AMC moons.. NFA
We all do it… Deep OTM calls that almost never pan out but when they do it means faster lambos..
Hedge fucks get us that way and use that as a steady source of income to cover the cost of their shorts. So I say flip that shit on them and use their strategies against them.
Here is how it goes:
Recycle time : 1 week
If you are a XXX holder or more sell a near the money call option for a credit using 100 shares as collateral. Then go to the last strike price and buy as many OTM call options as the credit gives you.
Senario 1: stock price falls, otm option worth less, but covered by the credit received.
Senario 2: stock price stays the same, otm option worth less, but covered by the credit received
Senario 3: stock price goes up slightly but under the near the money strike price, still profit from your shares, otm option worthless, but covered by the credit received
Senario 4: stock price blows past your near the money strike but not enough to reach the OTM call option, keep the credit received, cover the exercised near the money call option with your shares at a profit (strike – avg) and quickly buy your position back to maintain your shares. OTM option worthless, covered by credit received.
Senario 5: stock price moons…. Nuff said
What this does is essentially forces the market makers and hedge fucks to finance your gamble at no cost to you. And since the amount of otm long calls are much higher than what you are selling near the money, you force the hedge fucks and market makers to hedge their options positions by buying more stock.
Example: AMC Price 47.80 Hold 100 shares of AMC stock at 47.80 Sell 1 53 call option for 0.87 Buy 22 145 call options for 0.04
I do this every week on Monday and have maintained an options and raw stock position since February without adding more money to my account.
Not financial advice, do as you please
Submitted September 14, 2021 at 09:37PM by Successful-Way-3000
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