Can someone help understand the R/R and suggest a better way?
Example:
In Dec. 07, Index @200
Buy 150 June 08 Call@55
Buy 250 June 08 Put@50
Sell 215 January 08 Call @1.50
Sell 185 January 08 Put @4.00
Agreed this will tie up a lot as it is DITM.Goal is to generate 4-5% per month...
while I am not able to answer your tax question, I am curious about the strategy. Of course, this is not a new strategy, I have not seen much details. if you don't mind, can you pl. share some of the details?
thanks