Quote from: OgNasty on Today at 07:44:32 AM

Quote from: d_eddie on November 18, 2024, 11:40:34 PM

Quote from: OgNasty on November 18, 2024, 11:30:04 PM

I sell covered calls on my stocks, but
may consider buying a massive amount of calls at around $250K with a December 25 expiry. If we end up $300K+ they would be worth a fortune.

the premium's going to be crazy.

I’ll probably be looking at buying so far out of the money that it seems like throwing money away with the expectation for a 300%+ gain next year.

Don’t fall for it!

Actually, what I was considering is selling calls during the bear part of the cycle as an alternative to plain selling coin. I would not sell a call expiring in 2025.

If such OOTM calls for end 2025 were affordable and I happened to have some spare money, well, a little gamble can't hurt right? Worst that can happen, I lose the premium I paid.

However, option pricing is an art and a science. I doubt they would be underpriced, especially if launched in the middle of this bull run.

What I am sure of is: No underpricing will go unpunished Wink