Could someone please review and critique my strategy and logic? I’d appreciate any insights or suggestions to improve it :)))
🔎Strategy Components:
1. **Long Position:**
- ➕Buy a LEAP deep ITM call option (minimize theta decay)
- E.g: Purchase a PLTR Jul18 $90 Call for $4,000 with a theta of -$5.
2. **Short Position:**
- ➖Sell weekly OTM call options against the long LEAP call to collect premium income.
- E.g: Sell a PLTR Feb21 $130 Call for a premium of $140 with a theta of $18.
🔬Example Trade:
* Buy PLTR Jul18 $90 Call for $4,000 (theta = -$5).
* Sell PLTR Feb21 $130 Call for $140 premium (theta = $18).
🗝️Outcome Scenarios:
1. **PLTR Closes < Short Call Strike Price:**
- I retain the premium collected from the short call.
2. **PLTR Closes > Short Call Strike Price:**
- I get assigned on the short call and exercise the long call to cover the position.