5.2.4 My Favorite Diagonal Strategy
August 31, 2022
|By admin
A poor man’s covered call is an options trading strategy where an investor with limited funds (or just wants to use leverage) buys a long-term call option on a stock while simultaneously selling a short-term call option on the same underlying asset. This strategy allows the investor to participate in the potential upside of the stock through the long call position while generating income from the short call premium. As the name of this topic suggests… it’s my favorite diagonal strategy (and one of my overall favorite strategies) and as you learn and trade this strategy I’m sure you’ll fall in love with it as well!
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