LD Lossdog Research
strategy

short call verticals

2 matching records.

Trade idea

Trade idea short call verticals

short call verticals can be used to add income to a bullish portfolio

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Strategyshort call verticals
Time horizonshort-term
Entry / triggerbullish on the underlying asset
Target / exitcapture premium while capping upside risk
Invalidation / stopif the underlying moves against the position
Speakerunknown
Risks
  • limited downside protection
  • capped upside potential
Q&A

How do you think about adding short call verticals to a portfolio? What delta range would you typically set the short strike at?

The speaker suggests using a delta range around 30ish for the short strike and recommends a width of 20 to $30 for a $300 stock. They also mention that the strategy is suitable for a bullish portfolio.

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Actionable takeawayConsider using short call verticals with a delta range around 30ish for the short strike and a width of 20 to $30 for a $300 stock in a bullish portfolio.