I've spent two days mulling over the diagonal LEAPS paper. Very interesting, and a good presentation of some material that is counter-intuitive for me.
I tend to trade vertical credit spreads and iron condors, usually single month durations, usually on stocks rather than indexes. I've been successful at it, but as you noted in a post, it can be time consuming, since dealing with individual stocks requires some diversification to stay out of trouble.
Since my retirement plan requires 1.25% / month, and I am shooting for 1.5% / month, I think the diagonal LEAPS makes a good conservative anchor for 1/3 to 1/2 of my capital. I can think of some minor modifications to be more investment oriented rather than income oriented, like legging into the LEAPS over time on market pull backs. Makes the accounting a little more difficult, but should make the whole thing a little more profitable.
No real question, just thanks for the clear explanation.
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