With SPX basically unchanged from late October, I’ve had continuous premium coming in with little to no change in the LEAPS values. Love it!! With two more rolls next week all cash outlay for all positions will be recovered. And with the long LEAP puts sitting at 6800 things are setting up nicely.
But how can we make things even better and safer? After a long “Red Team” call with my brother @bikeeagle we came up with some ideas on what to do with excess cash that will hopefully be coming in (but you never know! 🙂 🙂 )
Some ideas:
1. Keep doing everything as is and just add to the LEAPS.
2. Roll up the LEAPS further and even into the money a little on the put side for margin reduction and more downside protection.
3. Buy back the bear call spread LEAPS. That would be nice margin reduction getting rid of those.
4. When adding going forward only buy the LEAP put. A little more expensive but no margin hit on the call side.
5. Go ahead and roll the current LEAPS positions out to 2030 now.
What I’m leaning towards as premium received allows:
2 and 3 together then 5 then 4.
It’ll take awhile but would make the setup absolutely perfect….
Options Bistro 