Hi Advanced Traders!
As many of your covered calls (converted from your bear call spreads) are expiring this week, you can consider using your free capital to start new wheels by first selling cash-secured puts. You can also consider using some of your capital to invest in long-term holds, such as SPY. The goal is to keep your portfolio balanced with long-term holds and Wheel trades, according to your preference and risk-tolerance.
If you purchased LEAPS options, make sure to set a goal of what price you would like to sell them for. If you're trading them, I usually recommend setting a 5-10% price increase target. This means that if you purchased a LEAPS option for $5,000, you can plan to sell your LEAPS for $5,250 or $5,500. If you want to hold them until a couple of days before the next earnings date, just make sure you are able to withstand the volatility.
If you want to read my thoughts on LEAPS right now, feel free to check out last week's Premium Membership Position here.
-Steve and the Call to Leap Team
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