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Podcast: Options Boot Camp
Episode: Options Bootcamp 20: Options in Lieu of Stock
Description: Basic Training: We present two choices for using options in lieu of stock:
Stock Replacement Strategy.
How does it work? Examples include:
An ITM leaps call purchase - requires premium over parity payment
Selling a one month ITM put - for the more options savvy trader.
By swapping out a LEAPS for an underlying, you get a much more preferable position from a Greeks perspective.
Stock Repair Strategy
Under the right set of circumstances, it can be very useful and practical. Appropriate for stocks that fall in value of 20-30%, that you feel...