Take for example the ORCL Jan '26 $140C ∆80 LEAPS. OK it's a nice premium of $4,280 but over 10 months surely ORCL will rise over the break even of $182. If it rises to $190 by July which is highly likely, the writer is stuck bag holding and missing out on much bigger gains until he gets assigned. Is it as simple as a person just wanting to hedge the position or are there other motivations? I get that he/she could buy to close on frequent dips but once it breaks out of resistance is he/she not stuck for possibly months?
Xplain meh plez!