I bought \~33-50 delta 30-45dte calls on beaten down Mag 7 stocks. Theta on these is usually in the 0.20s so I usually sell within a week or two and avoid earnings/fomc to avoid iv crush. I bought calls on META & MSFT which were sub-20 trailing P/E before they bounced off of major support. Both GOOGL at $320 and META at $520 posed attractive buys immediately after their oversold earnings dip. NVDA in the $190s was also a no brainer since it appears to be range-bound $190-210 just like last year’s $170-190.
Since this is a small account with no access to margin, I have to leverage options and can only hold a few contracts at a time. Options leverage is superior to margin leverage anyways. Liquidity is also a major consideration as I instantly write-off any option that has more than a 5% spread. Hence why I mostly buy Mag 7 monthlies \~33-50 delta. I don’t really dig into fundamentals. I only follow stocks that have great fundamentals and liquidity, and wait for attractive valuations at key technical levels before buying calls. I don’t short either since this is a bull market where stocks can rocket to the stratosphere on garbage earnings or 3 digit P/Es (I’m looking at TSLA, SPCX, and PLTR).
Honestly, I’m regarded and probably just got lucky.