Originally Posted by
Hawaii50
Sounds like Trip is just using a stock replacement strategy. Less outlay, more leverage, they can be rolled forward, and no chance of margin calls. Not sure why he’s taking so much heat.
Happy Fathers Day!
I wouldn't call it 'heat'. I'd rather call it a discussion. I am not so sure I really agree with the 'leverage' aspect of it. He has monies tied up for 18 months. Might as well be long the stock without the hole to dig out of. I dunno. I hope it works for him. I couldn't see doing that without getting some offset via sold puts, and if I were doing that with the 'confidence' he has in the underlying, why bother with the calls?