/biz/ - Business & Finance

>>52674161
You can use the delta of the CC's to find your probability of success, and probability of touch. You can and should roll your calls defensively/aggressively based on your risk tolerance. That's a different discussion entirely, but the ability exists to reduce cost basis.

>Gamma is highest ATM, so would you just buy deep ITM to avoid gamma exposure?
Gamma is also affected by exp date. It will automatically be low by buying a LEAP. The low gamma is generally a benefit in general, as you don't want your equivalent 80 shares of stock ranging from 20 to 100 on a weekly basis. You know that your 80 shares should increase slowly as price hopefully moves up. And will still hold value with a moderate downturn.

I purchased one share of SPY and QQQ today. I'm basically a sexy Warren Buffett.