%% LOL i hate the term AI; as if all machine learning is artificial, like some sort of artificial eyes Good AI points anyway. IF i had of known UPRO was going to trend mostly/ like it did 2024 , i would have bought some LOL........................................................................................ Some SPXL traders make money\ but I will NEVER again use a time stop only in JAN\again. Learned better than machine on that loss, years ago LOL. Of course with enough of a profit cushin/ time stops are fine+ may profit better .
It's a formula (and a good one). It doesn't take into account the human side of the trading. Example, buying back a dog (and gleaning a tax loss for April). Also when I see an option getting close to in the money (near expiration), I will buy it back, to prevent large gains (higher taxes). The old saying comes into play..."It's not what you gain/make, it's what you keep".
You can do either 1) sell shares buy back calls if you think market is going to have a pullback for a better rentry or 2) keep holding shares buy calls back and sell next quarter calls. Selling weekly calls otm is where gamma is going to hurt you hard on a strong move. You want to be selling vol not gamma.
No reason to ever buy CC in an unstoppable bull market that isn't capable of going down. Nothing to gain.