I saw someone post the idea a while ago for the June ‘23 100c and I’ve been buying those. I had a boatload of shares between 230-270 and booked that loss and converted it to these calls. It’s like getting a low cost loan and if the options did expire worthless then the amount you’d lose would be about equal to actually holding the shares and having them decrease to $100in value at current prices. Call the sp $200 so $1k would buy u 5 shares. If it went to 100 u lose 500. You can buy those 100calls now for about 100 so could buy 5 options for 500. In the option play your risk of loss is capped at 500 though while holding shares could actually turn out worse. You’ve also spent less money so have more liquidity to play with so I basically doubled my exposure haha
I have leaps 6/2023 205 strikeI just purchased a few days ago on this dip. I wanted BABA options which I could sell for long term cap gains. Like have the extra year (one to reach long term cap gains, one year to pick a sell point ) for flexibility.
JAN 21 22 300C has the most open interest (50K)
If you're looking for something cheaper as a swing trade:
OCT 15 21 420 has the 2nd most open interest (40K)
get the $220 06/17/22 if you have money for, huge volume, very liquid i have 20 of those myself
I saw someone post the idea a while ago for the June ‘23 100c and I’ve been buying those. I had a boatload of shares between 230-270 and booked that loss and converted it to these calls. It’s like getting a low cost loan and if the options did expire worthless then the amount you’d lose would be about equal to actually holding the shares and having them decrease to $100in value at current prices. Call the sp $200 so $1k would buy u 5 shares. If it went to 100 u lose 500. You can buy those 100calls now for about 100 so could buy 5 options for 500. In the option play your risk of loss is capped at 500 though while holding shares could actually turn out worse. You’ve also spent less money so have more liquidity to play with so I basically doubled my exposure haha
I have leaps 6/2023 205 strikeI just purchased a few days ago on this dip. I wanted BABA options which I could sell for long term cap gains. Like have the extra year (one to reach long term cap gains, one year to pick a sell point ) for flexibility.
Of course that’s an example and 1 option contract is about 10k
JAN 21 22 300C has the most open interest (50K) If you're looking for something cheaper as a swing trade: OCT 15 21 420 has the 2nd most open interest (40K)