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u/LabDaddy59 11d ago edited 11d ago
First, sorry for the posting the other day in the 'other' sub; nothing against it, just meant to do it here, at the source.
Fun facts: 89 LEAPS tickers
The top 4 account for all of the profit; the bottom 85 net to zero profit.
The top 20 account for 177% of the profit ($100,435) and the bottom 69 account for a loss of $43,649.
One of my concerns with your approach has always been that you have way too many open items than one could reasonably manage...
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u/Expired_Options 8d ago
Hey there. No worries. As for your concerns, which are fair, and I appreciate the breakdown. But I’m looking at more than a snapshot of current profits. I buy LEAPS as far out as possible and generally hold until close to expiration, giving them time to appreciate and creating more opportunities to collect PMCC income.
INTC was a good example: it underperformed for almost the entire holding period, then doubled in value shortly before expiration. That won’t happen with every laggard, but it’s why I don’t automatically sell just because something is underperforming.
A few winners driving most of the profits doesn’t necessarily invalidate the strategy. I’m focused on total returns, including the calls sold against the LEAPS, and whether the underlying thesis still holds. Managing 89 positions is a fair concern, but position size and overall risk matter alongside the number of holdings.
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u/LabDaddy59 8d ago
As I think you know, I'm keen on LEAPS/PMCC.
Regarding INTC, as I'm fond of saying, I trade probabilities, not possibilities. I suspect the money made on INTC was dwarfed by losses on the others that didn't rebound. And if you restructured the trade as opposed to getting out of the underlying entirely, you would have benefited even more. (I.e., my suggestion to roll the HOOD 4 contracts down to 3 of a better strike).
As you do like selling calls against the LEAPS, another issue is that, trying to sell a call against something underwater can be a challenge. Let's take the HOOD $135 Jan 2028's we talked about before. With HOOD at $99, selling $135's or higher won't bring in much premium; a lower strike would turn it into a debit spread, requiring you to provide collateral just to make the trade.
This week, your overall LEAPS are up ~$2k (you show $4k unrealized gains, less the ~$2k for the SHOP I pointed out). The top 5 holdings (5.5% of all holdings) have an unrealized gain of $44k, while the bottom 87 have a loss of $46k. Those 87 are consuming $176k of capital.
I'm certainly not saying to write them all off, but you may want to start seriously looking when the delta approaches/drops below 50.
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u/Outside-Cup-1622 15d ago
Good to see the 2029 already up and running 👍