Do you add LEAPs to your portfolio? I.e. 5% in ITM call options with an expiration 1+ years out?
For me, this could be potentially interesting for stocks that are undervalued and at the same time low vol. and preferably with buybacks.
Examples:
Maybe a 250 USD call option on McDonald’s 1.5-2 years out. They have some buybacks, trade around 300 or below that at times and have low vol.
Other examples might be Colgate or Comcast.
Anybody supplementing their portfolio with such constructions? Which companies are interesting in your view if you look for cheap vol and depressed multiples combined with intact business models.