The general idea is an advanced collar composed of:
1. Buy a deep itm LEAPS call (replacing outright owning 100 shares)
2. Sell a call option
3. Buy a put option
For example:
SMCI is trading around **$24.61**.
* Buy $13C @ **13.23**
* Sell $26C @ **5.90**
* Buy $20P @ **3.33**
Net debit = **10.66** ($1,066 per contract). Payoff looks like this:
https://preview.redd.it/l3koatiz2pdh1.png?width=1227&format=png&auto=webp&s=eaed559cfcf5ddfd636823491efc362bd215c0b3
Seems like a pretty decent risk/reward. Am I missing something, is there a better way to go about this?