I’m a bit more rambling today than usual, but it was an unusual day after an eye opening weekend.
A few years ago, maybe about 5 years ago at this point, I wrote an article about a lower maintenance approach to hedging a portfolio.
It involved the use of a well diversified portfolio of about 10 names. They would, ideally, all be high and safe dividend paying companies.
The idea was to use LEAPS and try to stagger the expirations and then just sit back.
Sit back and collect dividends and add that income to the premiums from having sold the options.
For the LEAPS strategy I had also planned on using a strike price that would reflect a fair amount of capital; appreciation over the year or two. Say 7% a year? 10%? Continue reading “Someday Began Today”