IRA Options

Poor Man Covered Call in TWTR

| Jun 16, 2015
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    IRA Options

    Poor Man Covered Call in TWTR

    Jun 16, 2015

    Today on “IRA Options,” Liz and Jenny take a look at their position and decide to place a trade in TWTR.

    First the ladies look at the options cycles for TWTR, recognizing that the earnings announcement is probably going to come in the cycle with the highest volatility.

    Liz and Jenny decide to put on a poor man’s covered call, which is buying a LEAP (long-term option) call that is 1 strike ITM or more and selling a near term call against it that is one strike OTM. This is a long-term position that they do not have to actively manage.

    Tune-in to today’s segment to learn more about the ladies’ reasoning behind this trade.

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