u/greyenlightenment ·
Reddit — r/thetagang
· June 26, 2026 at 19:25
· ⬆ 22 pts
· 💬 37 comments
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Based on my experience, selling long-dated (6+ months) at the money options is optimal for this market. These are calls where I also own the underlying.
So I may own 100 shares of NVDA and sell an ATM call that expires in 6 months. The net delta is around +.4 . I am doing this for several tech stocks.
Since 2024 there has tons of short-term whipsaw due to headline risk. This include tariffs, iran, china , inflation, Ai...whatever. So selling short-dated means a high risk of being forced out of position too soon.
There will be these 3-7 week stretches where the market rapidly falls 3-5% and then bounces. If you're selling long-dated options you will make money on the roll yield on the completion of these cycles.
Plus, a big premium means you make more $ from small percentage changes of the premium falling if sold ATM.
When done 2-3 years out (the maximum duration), you lock in the high interest rate. Based on the premium of the ATM call relative to the put, the implied interest rate is 4%, which you lock in when you sell the call (whilst owning the underlying). It's much more likely interest rates will fall due to recession or other problems, than rise above 4%, as that is the upper-end of the range since 1990 or so.