Hey Advanced Traders!
Because of the market uncertainty, you can consider still setting up your spreads with your second sold legs around delta 0.16.
However for me, I am thinking of taking a pause on setting up bear call spreads until earnings are over. My concern is that because many of our stocks have pulled back, there may be a chance that these stocks might gap up after earnings, which means that our second leg may go from OTM to ITM and our brokerages may not be able to trigger our buy-stop orders in time during market after hours.
Rather, we can take advantage of the high IV by still selling covered calls on our previously owned wheels while we wait for market retracement.
If you want to still set up your spreads, feel free to do so. Just keep in mind of what the earnings dates are for your underlying stocks.
Happy trading and investing!
Steve and the Call to Leap Team
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