I would really like to see some data on a strategy like this:
- keep ~10-20% of a portfolio in deep ITM LEAPS calls on indexes like SPY
- purchase them initially 2 years out and then roll them at 1 year or even 6 months
- rebalance ~ monthly?
It's a lot harder to manage these than, say, leveraged ETFs, because the cost of one LEAPS is so high of course, so it will likely have to drift far from that 10-20% range before it can be rebalanced. But I'd really like to see how this does in downturns of length ~1-2 years (e.g. 2022). If you're diligent about trimming in good years so you can buy more in down years, do you end up ahead even if some of the LEAPS purchases drop dramatically?
Any way of getting historical prices on these?
- keep ~10-20% of a portfolio in deep ITM LEAPS calls on indexes like SPY
- purchase them initially 2 years out and then roll them at 1 year or even 6 months
- rebalance ~ monthly?
It's a lot harder to manage these than, say, leveraged ETFs, because the cost of one LEAPS is so high of course, so it will likely have to drift far from that 10-20% range before it can be rebalanced. But I'd really like to see how this does in downturns of length ~1-2 years (e.g. 2022). If you're diligent about trimming in good years so you can buy more in down years, do you end up ahead even if some of the LEAPS purchases drop dramatically?
Any way of getting historical prices on these?
Statistics: Posted by afoolwithmoney — Sun Jun 16, 2024 10:02 pm — Replies 0 — Views 57