tom, i do it always with most time value, ie atm. i LOVE when i see my short calls itm, the more the best. since i sell ratios based on leap delta my leap long calls always appreciate more than the short calls and i make profit not only from my short call premiums but also from my leaps. as i mentioned in another post as market increases i cover my short calls by selling leap calls. i replace those leap calls when the market has a correction. (read my paper)....drjoe
--- In ConservativeOptionS
>
> How do you select the strike for the short side? ATM? I see you're
> pretty deep ITM now. I have a CC written at 119 for April.
>
> At 05:29 AM 4/7/2010, you wrote:
>
> >tom, i trade diagonals and always have an open position, currently i
> >have spy dec 12 - 90 strike and the april 114 strile 9:10 ratio....i
> >have a paper in file section which describes how i handle the position...drjoe
>
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