I have a long position with Apple common, which I intend to hold. I want to add to the position and have been thinking of purchasing Jan 2015 leaps at around a $400 strike price. I can also sell shorter term calls against the common but not sure if I want to short the stock. My question is would the $400 strike be a decent entry point or should I consider going deeper ITM? I can put up around $30K against the leap. I'm looking for some good MB feedback from people who have purchased aapl LEAPS would this make sense or would you consider a shorter option time frame; no #$%$ answers. Thanks.
I do what you are suggesting although I tend to go pretty deeply ITM. At $300, the premium is very low (i.e., the value is largely intrinsic). That way I can sell weekly calls and still make money with lower exercise risk. It's a good income strategy. Good luck.