ongba
Member
A large portion of my tsla shares are approaching the one year mark at the end of September. I'm leaning toward selling a portion of these shares to put into DITM Leaps, probably Jan 16 when they are released.
What is the optimal delta value that I should look for when using this stock replacement strategy? Are there any other factors that I should be aware of when executing this strategy?
Since there is no dividend offered it seems like a better way to leverage my money to do DITM leaps. Especially considering I see the stock going much higher as we approach gen 3.
Thanks for any feedback!
for the stock replacement strategy, look for a delta of 90 or above. With regards to other factors with the DITM LEAP as stock replacement, the LEAP, especially if considering jan 15 or 16, will not be sensitive to time decay because it is so far out from expiration. However, it will be sensitive to vega (ie volatility), so look to buy when volatility is low (ie when tsla is in a consolidative phase like it has been for the last week or two).