1-If BABA is a huge value like you’ve calculated based on a BS metric, taking assignment at a reduced cost basis is an even greater value. Risking $6k with the highest probability of “PERMANENT LOSS OF CAPITAL”. If you’d like to know the probability of profit, it’s 34%. Buying stock gives you at least 50%. Holding shares indefinitely, the probability increases. Again, if permanent loss of capital is what you’re trying to avoid, buying calls ain’t the way to do it. Half of the premium you’re paying is extrinsic value and is lost daily to time decay. It sounds like this is sound long term investing for you. Best of luck with that.

2-A true stock replacement is a delta of 1. If you want the leaps to act like stock, you buy a 1 delta call or at a minimum 2 standard deviations below the ATM call.

3-Again, you don’t understand how margin works. It’s dependent on if you’re in a regulation T account, a portfolio margin account or a retirement account (cash covered). Each one requires a different amount of buying power to cover a naked put. Your example above says this would tie up $21k of buying power which simply isn’t true unless you’re in a cash covered account like your retirement account at which point a “margin call” that you mentioned in your other post is not a player. Again, you seem to know just enough, but not nearly as much as you think. In your example the Jan 2023 $170 put in my regulation T margin account tied up $1751 in buying power and nets me around $700 in premium.

3-short term capital gains are treated as ordinary income. That is to say I pay on that, what I pay at my regular job. Do you not go to work because you have to pay taxes? This does not have to be a long screen time event and To say you don’t want to make an extra $100k in a year because you have to pay $30k in taxes is well….stupid. Are there more tax efficient ways of making money out there? Sure, I’ll give you that. But in my world I don’t let the tail wag the dog.

4-If me telling people to approach what you say with caution and posting a link for people to get a real education on options is snake oil, then what is the garbage you post? Let me provide some examples; you posted “Tesla is due for a STEEP decline” and then posting a tweet from Michael Burry. How about another? You posted “It’s not too late to get out of bubble stocks” and posting a link to a WSJ article. Snake oil salesmen sell fear. That is the crux of your “investing advice” on here; Fear. Bubbles. Margin calls. Overvalued. Oh my. If your due diligence is a tweet and WSJ article, I reiterate my caution.

I’d say your best strategy so far has been trolling me. Hook, line and sinker every time. 🍻