Over the years I've developed a pretty simple way to jack up my returns from two basic systems I trade: (1) monthly momentum and (2) undervalued stocks long term. I know and have read lots of threads here with some pretty sophisticated posters but generally all I do is employ LEAPs when volatility and the premium is cheap. The distribution of my trades makes this work as a good chunk of my winners are big gainers.
The potential for a further decline from here is very juicy for me. I would love to own some 1-2 year calls on positions if we in fact enter a bear market to the likes of 2000 and 2008.
Only issue is the volatility at the price extremes is too high and calls are expensive. I could sell the puts, but if I want to hold stocks on a minimum yearly basis and I do sell the puts, I have not generally had my puts assigned so I likely won't be long the stock even if it hits my price and the premium I collect won't really be a consolation for me.
I have considered butterflies on a 1-3 month basis and then as volatility drops buying the LEAP calls. I do not have a lot of experience with multileg positions but am willing to read up on this. Ideally, I am looking for a position I could hold for a year but I have never heard of butterflies utilizes for this duration.
Any help or insight would be appreciated (including links on what to read!) Thanks.
The potential for a further decline from here is very juicy for me. I would love to own some 1-2 year calls on positions if we in fact enter a bear market to the likes of 2000 and 2008.
Only issue is the volatility at the price extremes is too high and calls are expensive. I could sell the puts, but if I want to hold stocks on a minimum yearly basis and I do sell the puts, I have not generally had my puts assigned so I likely won't be long the stock even if it hits my price and the premium I collect won't really be a consolation for me.
I have considered butterflies on a 1-3 month basis and then as volatility drops buying the LEAP calls. I do not have a lot of experience with multileg positions but am willing to read up on this. Ideally, I am looking for a position I could hold for a year but I have never heard of butterflies utilizes for this duration.
Any help or insight would be appreciated (including links on what to read!) Thanks.
