macrocephalopod

options friends. help me think about something plz. I am trying to get better about using options to express certain views. Here is what I am thinking about (on the advice of a follow from a while ago)

I own $CCJ common. some "easy money" has been made in the stock. I think it could run further. I am considering selling some and buying some long-dated OTM calls. my question: how to think about strike selection?

Do you have a view on vol? If not, sell some now, set a stop loss and plan to top up your position again if the stock goes up more. Effectively the same exposure but you won’t be paying the option premium and transactions costs for it. Main downside is gap risk.

People would rather buy options than implement a sensible trading plan smh.