Retail investor: I run poor man's covered calls. Buy a LEAP, sell weekly calls against it.


Me: So you're capping the upside on your own LEAP every single week?
Retail investor: But I'm collecting premium on it.
Me: So the company finally rips & your short call chokes the LEAP you actually wanted to ride. You strangled your best trade for a little weekly premium.
Retail investor: ...I have gotten burned on big green days.
Me: I buy long duration calls to MAGNIFY my most bullish setups. I don't sell calls against them & cap the upside. That defeats the whole point.
Retail investor: So just let the bullish bet run?
Me: That's the entire reason you bought it. Let it cook!
Don't strangle your best bullish bet for weekly scraps...
Capping a LEAP with short calls defeats the whole point.
When you're bullish, be bullish.
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JoshuaParawansa
· 14h ago
Ape In 🚀
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