If I think a stock will go up in the medium term (3 months), but not in the short term (30-45 days)... Would it be a good idea to buy an option 3 months out deep in the money, where I'm sure I'll be above the break even point. And sell a short term option far enough out of the money that I don't think it'll ever be in the money?
From the graph I can see, other than capping my gains if it sky rockets during the short term contract, I don't see any other downside. Am I missing something?
Submitted June 11, 2021 at 09:10AM by FrozenFirebat https://ift.tt/3grnWtl
