Question on rolling over short LEAPS

Discussion in 'Options' started by chrismontez, Dec 17, 2010.

  1. In Jan 2009 I had some money I wanted to park so bought
    some stock at $49.70 and sold the 2010 50sp call LEAPS for $978. I picked up the 4% divy and at expiration bought the call back for $395 and shorted the 2011 55sp LEAP for $495. Stock is at $65. Assuming the stock doesn't tank before expiration, my thought was to buy back the short call at expiration and rolll out to the 2012 55sp LEAP. Pickup the 4% divy in 2011 plus probably $80-90 on the additional year. Anyone have a suggestion on an alternative conservative annual strategy on this position.