Writing calls against stock is a way to reduce cost basis. However, the upfront cost of purchasing stock can be a lot. Here are some variations on covered call writes to consider.
Delta is the options Greek most often considered by traders. Delta allows us to understand the relationship between an option and its underlying asset. We can use this to create a hedge. See how here!
At tastytrade, we enter multi-leg option trades as a single order. Nothing against the hokey-pokey, but there’s no “legging” for us. We’ll explain why in this blog post.