I am new to options…
I was interested in your LEAP in CHWY and wondering if you would be willing to share the details of the trade (mainly the strike you chose and why) and whether you plan on selling OTM calls over time to reduce the cost basis on that trade. I am trying to understand the variables in setting up trades like that – curious about balancing the leverage possible against the amount of time value you are buying up front. The stock per dollar leverage seems to be a lot less with growth stocks like CHWY (leveraging 2-3 shares as opposed to some LEAPS where I believe 10:1 is often possible?). Id love to get anyone’s experience/feedback on these questions.
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