whats your lowest cost basis (after factoring in all the premium skim?)

Now it's rare that in this scenario the stock dips to my CSP and stays there and if it does get there and I think it might dip further, I can roll my CSP further out but with MSFT if I get it at $205 so I'll be happy to take assignment. However, since i'm heavily bullish overall on MSFT and think no matter what MSFT will be back at $220 within the next 2-6 months because this dip was a fluke, I'm going to buy a leap that breaks even at $225 in March 2022 for $6k instead of just buying another 100 shares on top of the 100 I own and the 100 I was just assigned at $205. In actual numbers i'm already in for $22,000 on my original shares, $20500 on my assigned shares, and if I buy another 100 at 205 I'll be in for $62k vs 48K with the leap option alternative. Simultaneously I will sell a CC against my new leap at $220 for a premium and against my assigned shares from the CSP at $205. The shares I purchased at $220 I will hold until the price comes closer to it for me to profitably sell CC at $240.

/r/thetagang Thread Parent