Showing posts with the label algorithmic-execution-strategies

Advanced Strategies- Introduction

Advanced Strategies

The strategies thus far investigated barely begin to cover the many ways to acquire stock using the premiums received from the sale of LEAP puts. One method that I especially like is to divide the potential universe of higher-rated issues having LEAPs into three categories: (1) stocks that I favor highly, currently hold in portfolio, and want to acquire more of; (2) stocks that I would like to acquire for my portfolio at below-market prices; and (3) stocks that I am more or less neutral about, but would not mind acquiring for my portfolio at prices substantially below today's market prices. In keeping with this "triage" approach, I sell into-the-money LEAP puts on stocks in the first category, at-the-money LEAP puts on the second category, and out-of-the-money puts on the third category. I use the term into-the-money rather than in-the-money to signify the use of exercise prices not more than one or at most two strikes above the current mar…