After 25 Years, These Are the Only 5 Options Strategies I Still Use

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The analysis focuses on the strategy of selling cash-secured puts and using LEAPS calls for long-term upside exposure with less capital. The core idea is to generate income by selling puts and potentially acquiring stocks at a lower price or collecting premiums. The "wheel strategy" is presented as a way to combine selling puts and covered calls into a repeatable cycle. For put selling, specific filters are recommended: stock scores above 6 for fundamentals, growth, and technicals; moneyness below the current stock price; probability of expiring worthless at 70%; days to expiration between 30-45 days; and a bid-ask spread under $0.25. The analysis highlights that the highest-ranked trade is not always the best, and investors should consider implied volatility (IV Rank). For LEAPS calls, the strategy involves buying deep in-the-money options to gain long-term upside exposure with less capital than owning shares outright. Protective puts are presented as a defensive strategy to hedge against potential downturns, acting like insurance for gains already made. They offer the right, but not the obligation, to sell at a set strike price if the stock falls. The analysis contrasts short-dated options with LEAPS, noting that LEAPS have less time decay due to their longer expiration dates.

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